Bitcoin Mining Destinations: BeInCrypto takes a look at five to watch China step out of the mining limelight.
2021 was a big year for Bitcoin. The year started with a price of around $30,000 just to hit one new all-time high of over $68,000 in November. Overall, the total crypto industry market cap reached over $2 trillion.
However, China caused the entire industry momentarily fall flat on your face following a restrictive ban on bitcoin mining in April. After that, the price of bitcoin crashed back into the $30,000 area. Before the first news in April, new stories emerged about more raids in different countries Chinese provinces. By August, China was off the map in terms of its monthly global hashrate share.
While the ban caused major bitcoin price declines and market volatility, some places benefited from China’s decisions.
Bitcoin mining goals: friendly atmosphere
In order for a target to be ideal for sustainable bitcoin mining operations, certain factors are required.
One of the most important factors is the local energy price. In places where energy prices are cheap and electricity is readily available, miners have an easier time running large-scale bitcoin mining operations. In Argentina, miners use subsidized energy to mine bitcoin.
But in Kosovo the energy crisis about the region imposed bans about crypto mining in the country. With that in mind, another factor in ideal crypto mining circumstances is favorable government policies.
China and lately Kazakhstan are examples of the impact of political instability on mining. in the meantime Travel Destinations in North America with the political climate fairly constant, the ranks are rising as top travel destinations.
Additionally, locations with eco-friendly or sustainable options create a welcoming environment for sustainable mining practices. In El Salvador, the government launched an initiative to mine bitcoin using volcanic energy.
Considering some of these conditions and geopolitical factors, BeInCrypto takes a look at the top mining destinations around the world. Statistical information is based on the Cambridge Bitcoin Electricity Consumption index.
The United States
North America has become the world’s newest mining star with its relative market and political stability and economic energy costs. The United States felt the effects of China’s Bitcoin ban in particular. As miners fled the country and found new business opportunities in many states, the country became the undisputed Hashrate capital of the world.
According to data released by the Cambridge Center for Alternative Finance, the United States has a 428% increased hash rate compared to September 2020 figures. As of August 2021, the United States accounted for just over 35% of the global hash rate.
Certain states in the US are mining hotspots. the Mayor of Miami stated his goal of making South Florida, particularly Miami, a hub for fleeing miners. Both New York and Texas saw themselves noticeable as well Increase in mining activities Post Chinese Ban. insiders believe The United States government is already mining bitcoin.
Canada
The United States’ North American neighbor has also seen an increase in activity since China’s ban, although it has long been a hub for crypto mining. Cheap electricity prices help Canada produce nearly 10% of the world’s hashrate.
Cheap electricity prompted operations like Black Rock Petroleum set up a million bitcoin miners in Canada last year.
Additionally, Canada’s bitcoin mining scene has an eco-friendly tinge to it. In September, carbon neutral mining company Canada Computational Unlimited (CCU.ai) exited Canada general on the Toronto Stock Exchange. The crypto mining operation Mintgreen has plans starting this year to supply heat from bitcoin mining to the city of North Vancouver, Canada.
Russia
Russia is another dominant Bitcoin mining location with a global hashrate of 11.23%. Energy prices in the country are low, especially in the notorious Siberian region. Known for its rugged snowy landscapes, the region is also known to local miners as a power gold mine.
In early 2021, a Russian miner imported 20,000 bitcoin mining rigs into the country, the largest import of its kind.
After China’s mining ban, the Russian Association for Cryptoeconomics, Artificial Intelligence and Blockchain (RACIB), local authorities and companies worked together attract Chinese miners to the region.
However, due to the influx of miners looking for a cheap safe haven, the Russian energy minister said introduced “Crypto miner tariffs.”
Kazakhstan
Crypto miners are also finding a haven with low electricity prices in neighboring Kazakhstan. The country accounts for 18.10% of the global hashrate. Kazakhstan, a close neighbor of China, was an easy step for fleeing miners. Former China-based companies BIT mining and Enegix both moved thousands of plants and a data center to the former Soviet satellite country.
Due to the influx of miners, Kazakhstan announced its plans introduce electricity surcharges for crypto miners. Shortly after this announcement, so did the government revealed specific crypto mining taxes for 2022.
Later that year, the country felt the weight of the additional miners who resulted in a performance deficit.
As mentioned before, politics plays a big part in the fate of bitcoin mining. Be it in direct politics or in indirect cause and effect. Major unrest in the country earlier this year caused massive power outages. These failures made miners skeptical, as the outages disrupted mining capacity.
Malaysia
While China may have topped the crypto mining map in Asia, Malaysia on the other hand is continuing its streak. The country’s global hashrate is almost 4.6%.
Although another country felt the effects of the Chinese ban over the summer, the country also took action. Actually the government rolled over an illegal local mining center. And the local authorities switch off a $600,000 theft operation while police earlier this year arrested a man for stolen electricity for mining.
Bitcoin Mining Goals: Other Notable Destinations
While these places are among the top bitcoin mining places in the world according to hashrate output, other places are worth mentioning.
The Islamic Republic of Iran, with its low energy costs, accounts for just over 3% of the global hashrate. Over the summer, the country temporarily banned mining due to severe power shortages confiscated Equipment. Nevertheless authorities re-allowed it in September, and its mining boom continued.
In Europe, both Germany and Ireland have hashrates hovering around 4.5%. The countries still dominate as mining-friendly destinations. Additionally a few years ago Iceland LEDs the world in crypto mining. Although they are not leaders now, the country still hosts one of the world’s largest bitcoin mining farms owned by Genesis Mining.
Bitcoin mining goals: The future of mining
While mining, like most of the crypto space, was on the culture fringes, that is no longer the case. With more mainstream recognition comes more recognition, but at the federal level. The forecast for mining next year will surely include more mining regulations, Taxes and Restrictions.
However, it will also include a more sustainable mining industry. The last year, the keywords sustainability and eco-friendly were on the minds of many in the bitcoin mining industry.
As the world continues to embrace all things crypto, mining will continue to find the places where it thrives.
Do you have something to say about bitcoin mining goals or something else? write us or join the discussion in our telegram channel.
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