Understanding America’s Dominance in the Bitcoin World
In a groundbreaking analysis, River, a prominent Bitcoin services firm based in San Francisco, has revealed surprising insights about the United States’ commanding influence over the global Bitcoin market. According to their comprehensive study, the U.S. controls an estimated 40% of the world’s circulating Bitcoin supply, a staggering figure that translates to more than $790 billion. This amount surpasses the market value of most Fortune 50 companies when considered as a singular asset.
The Rise of a Bitcoin Superpower
River’s research outlines a multifaceted dominance that the U.S. has achieved, extending well beyond mere coin possession. American publicly-listed companies hold a substantial 94.8% of all Bitcoin on corporate treasuries worldwide. Furthermore, U.S. entities contribute to 82% of the global Bitcoin development funding and account for approximately 70% of venture capital investments within the Bitcoin ecosystem. The incipient market for exchange-traded funds (ETFs) similarly leans heavily toward U.S. investors, with domestic ETFs controlling 79.2% of the total shares in this asset category.
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Computational Power and Industrial Influence
Another crucial aspect of U.S. dominance is its significant share of the Bitcoin hashrate, a key indicator of network security and industrial dedication. River’s analysis shows that U.S.-based miners generate 36% of the global computational power, marking the nation as the largest contributor to Bitcoin network security. Since early 2021, these miners have extracted Bitcoin worth approximately $42.6 billion, supported by over $30 billion in capital investments in mining rigs, power agreements, and infrastructure development.
This growth has led to the emergence of at least 40 industrial-scale mining sites, each exceeding 10 megawatts in capacity, and a thriving industry employing over 20,000 Americans across more than 150 Bitcoin-focused companies.
Geographic Concentration of Bitcoin Mining
The U.S. Bitcoin mining industry is geographically concentrated, with major operations located in states like Texas, Georgia, New York, and Ohio, which offer deregulated energy markets or energy abundance. These states have become hubs for energy-intensive Bitcoin mining activities, reinforcing the country’s position as a global Bitcoin superpower.
U.S. Government and Institutional Holdings
The U.S. government’s Bitcoin holdings further underscore its influence, with approximately 198,000 coins under its control. This is nearly triple the amount held by the United Kingdom and significantly more than the combined holdings of nations such as China, North Korea, or Bhutan. In contrast, El Salvador, known for adopting Bitcoin as legal tender, holds a modest 6,000 coins, while Venezuela’s holdings are minimal at 200 coins.
Institutional ownership of Bitcoin in the U.S. is also noteworthy. Esteemed university endowments such as Yale, MIT, Brown, and Harvard have acquired Bitcoin either directly or through ETFs. Additionally, insurance giants like MassMutual, TIAA, and Northwestern Mutual have integrated Bitcoin into their long-term portfolios. Prominent hedge funds including Citadel, Millennium, D. E. Shaw, and Mariner are significant players in the Bitcoin market, as highlighted by River’s study.
Current Market Trends
As of the latest market update, Bitcoin is trading at $106,510, reflecting ongoing interest and investment in this leading cryptocurrency. The upward trend in Bitcoin’s value continues to capture the attention of investors globally.
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