Crypto Miners Are Fleeing to Russia and Canada, but Chinese Authorities Might Lift the Mining Ban -Breaking
- China‘The Great Mining Migration brought about by the bad reputation of cryptocurrency caused most miners to flee the region.
- Russia, Canada and the United States have all welcomed miners to their countries and they now lead the Bitcoin Hashrate contributors list.
- These areas offer favorable mining policies as well cheap consumer electricity, and perfect weather.
- Rumours suggest that China might reverse its ban on mining. Is it possible to expect a return to China of Chinese miners?
In May 2021, China triggered some of the biggest downswings of Bitcoin’s history. Bitcoin’s price plummeted after it was declared illegal to mine Bitcoin.
China, which once contributed 45% to the global hashrate of Bitcoin, now adds nothing to Bitcoin’s mining pool. This ban in China triggered the Great Mining Migration. It is the migration of Bitcoin miners to other parts of the world.
Chinese Bitcoin miners were desperate not to go out of business and turned to other countries. Bitcoin prices have risen to an all-time high, as the Bitcoin hashrate reached its peak since the May ban.
New Crypto Havens
Bitcoin’s hashrate recovery was helped by the new mining havens, the United States, Kazakhstan, Russia, and Canada. The United States now contributes 35% of the global hashrate, while Kazakhstan is currently in second place with 18% of the network’s mining.
Canada now contributes 9.6%, while Russia has contributed 11.2%. These areas proved to be welcoming to Bitcoin miners because they offer cheap electricity for consumers and have crypto-friendly policies.
Russia’s Siberia Irkutsk region has received the majority of Bitcoin miners in the country. Siberia has the ability to support Bitcoin mining, due to an abundance in stranded hydroelectric energy (estimates range from 20% to 20%). This makes Siberia a popular destination for environmental-conscious miners.
It is also ideal for cooling large numbers of ASICs within the sector. Despite their ban on Bitcoin, the Russian government welcomed miners.
Canada is almost exactly the same with great weather and plenty of electricity. In June, Black Rock Petroleum announced a deal that, if it pulls through, could attract the lion’s share of the Bitcoin mining industry to Canada.
To The Flipside
- Bitcoin‘The need to have electricity is still its Achilles heel
- Numerous blackouts have occurred in Iran’s cities The region is home to miners
- The impact of Bitcoin mining upon ordinary electricity users has been a concern in the United States.
What happens if China reverses its ban on mining?
There have been rumors that China might be considering lifting its ban against crypto mining, after Bitcoin reached an unprecedented high. The rumors most likely gathered steam after the National Development and Reform Commission of China stated that it would add “virtual currency mining” to its list of eliminated industries only after it gets public options.
A few days later, the commission printed news that the United States had overtaken China as the world’s largest Bitcoin mining country. Many believed this meant that China regretted its decision to ban cryptocurrency mining. What would happen if China reverses the ban?
When China announced a crackdown on Bitcoin mining in May, Kevin Pan, CEO of Chinese cryptocurrency mining company Poolin, stated, “We decided to move out, once [and]For all. [We’ll] never come back again.”
Relocating an entire company with all its mining equipment and heavy machinery would prove costly. Relocating to China in the months following the forced exit of miners is not a wise economic decision.
Bitmain and other Chinese companies that make cryptocurrency mining equipment have stopped any shipment to China. Even if the country reverses its ban on mining, there is no guarantee that mining won’t once again be outlawed.
Our best hope is for a new generation of Chinese mining firms to emerge in China. This would be a far better outcome than the return of Chinese workers who fled China during the Great Migration. For most mining companies, it would be impossible to afford the expense of moving to China and then returning home.
Why you should care
It is unlikely that Bitcoin miners from China will be returning after the ban. The goal of crypto mining is to decrease their carbon footprint, transition into more environmentally-friendly sources of power.
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