CNBC, China’s decision to close Bitcoin mining farms in its provinces may make the United States a new major contributor to cryptocurrency hashrate Say, Especially if miners seeking cheap energy and privacy laws flock to the country.
Cambridge Centre for Alternative Finance (CCAF) Revealed earlier this month “China’s share of Bitcoin mining’s total computing power dropped from 75.5% in September 2019 to 46% in April 2021.” This was before the country began to crack down on cryptocurrencies, which allowed the US’s share to rise from 4.1 to The second place is% to 16.8%.
CCAF stated that it is not sure what will happen to the Bitcoin mining business that was shut down by the Chinese government, but several executives of cryptocurrency-related companies told CNBC that it makes sense for miners to move to the United States due to the abundant supply of cheap energy. And the relative stability of national regulations.
CNBC stated: “The United States also has some of the cheapest energy sources on earth, many of which are often renewable energy sources.” Data provider Statistician It shows that the electricity prices in the United States are not the lowest in the world-the difference seems to belong to Iran-but they are much lower than other regions.
It is said that the promotion of renewable energy has also made the United States a compelling destination for abandoned Bitcoin miners in China.Efforts to mine the use of cryptocurrency Hydropower, nuclearAnd other clean energy sources can help alleviate some criticisms of the amount of electricity these operations rely on.
But according to CNBC, this is only part of what makes the United States an attractive destination for Bitcoin miners. The freedom and protection provided by US regulations—like them—may also attract Chinese mining operators to wish to relocate to a place that may not drive them out again.
Blockcap founder Darin Feinstein told CNBC: “If you want to move hundreds of millions of dollars of miners out of China, you need to ensure the stability of geography, politics, and jurisdiction. You also want to ensure that there are private property rights to your relocated assets. protection.”
There is already evidence that Chinese miners are turning to U.S. Bit Digital Announce For example, on July 13, it “accelerated its migration plan to North America and expects to complete the migration of its remaining Chinese fleet in the third quarter of 2021.” (It also has some operations in Canada.)
Washington post Report Other Chinese mining companies are also considering relocating to the United States. some, Like bit mining, Has raised funds to move abroad, but has not specified a destination. But so far, the consensus seems to be that the United States will become the main destination for these miners to find new homes.