Bitcoin Decentralization Under Threat from Hashpower Imbalance

The decentralized nature of Bitcoin mining is being threatened by an imbalance in global hashpower distribution. According to analyst Lucky, three countries - the United States, China, and Russia - account for an estimated 68% of the network's total hashpower.

This concentration of power raises questions about the practical limits of decentralization in a system designed to resist geographic control. The U.S. leads due to institutional-scale operations, access to capital markets, and relatively clear regulations. China continues to contribute despite official bans, relying on underground and relocated operations that draw on cheap hydropower and coal.

Russia benefits from low electricity costs and cold climates that reduce cooling expenses. This pattern is driven by infrastructure, energy access, and regulatory dynamics rather than coincidence, argued Lucky. Tracking hashpower distribution offers a more honest view of where influence within the BTC network actually sits.