Crypto

Bitcoin Banned in China, BTC Miners Migrate to Texas

China has finally banned bitcoin (BTC) mining farms on its territory. Persecuted by Chinese law enforcement, miners have migrated to other countries that are more open to cryptocurrencies. Apparently, many miners have decided to move their infrastructure to Texas.

In May 2021, China took action against bitcoin mining farms. For the sixth time in 8 years Beijing bans minors from entering China… The government has put forward environmental concerns. Most provinces quickly issued warnings to cryptocurrency generators. This is especially true for the provinces with the largest number of farms: Xinjiang, Inner Mongolia, Sichuan and Yunnan.

This new turn of the screw caused reduction of bitcoin hashrate by 25%or the processing power provided by the computers (or nodes) serving the network. Fearing sanctions from the authorities, many mining farms have piled up. Please note that China does indeed concentrate over 65% of the hashrate of the Bitcoin network.

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Bitcoin miners leave China for the US

Expelled from the Chinese land, minors migrate en masse to other more hospitable areas… As our colleagues at CNBC reported, this exodus is called “The Great Migration of Mining Companies”… Many heads of mining farms have decided to relocate their operations to countries such as Iran, Kazakhstan or Russia. These three countries provide access to cheap electricity and are evading the rules.

Instead, other miners turn to Texas in the US. Texas has several advantages for attracting mining farmsas well as electricity at a reduced price. Moreover, the share of electricity generated using renewable energy sources is increasing every year. Wind turbines currently generate 20% of electricity in Texas.

It is important to note that the Texas power grid is completely deregulated. Customers can choose from many electricity providers and use the energy as they please. Finally, many Texas political leaders openly advocate cryptocurrencies. Under these circumstances, Brandon Arvanagi, a former security engineer at Gemini (a cryptocurrency exchange), believes that Bitcoin mining “Will become a real industry in the USA”

Source: CNBC

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