Bitcoin Decentralization Under Threat from Mining Power Imbalance

Bitcoin's decentralization efforts are being threatened by an imbalance in mining power. According to analyst Lucky, three countries - the United States, China, and Russia - account for around 68% of the network's total hashpower. This concentration raises questions about the practical limits of decentralization.

The US leads due to institutional-scale operations, access to capital markets, and relatively clear regulations in states like Texas. China continues to contribute despite official bans, with underground and relocated operations drawing on cheap hydropower and coal. Russia benefits from low electricity costs and cold climates that reduce cooling expenses.

Lucky argues that tracking hashpower distribution offers a more honest view of where influence within the BTC network actually sits. The concentration is driven by infrastructure, energy access, and regulatory dynamics rather than coincidence.