Following the steps taken by China to ban cryptocurrency mining, the United States has seen a 428% increase in mining activity.
For many years, the China was the undisputed world No. 1 in matter server farms dedicated to mining cryptomonnaies. A study published by researchers from Cambridge University, and made public on October 13 shows a complete turnaround.
The United States has dethroned China and its activity of minage grew by 428% in one year. Conversely, China, which monopolized 67% of the market a year ago, has seen its share drop to zero.
The main reason for this new inventory lies in the measures taken by Beijing last spring to ban mining from its territory, a decision with immediate effect. The reasons are manifold. On the one hand, the “mining” activity alone was capable of compromising the climate commitments made by China. On the other hand, the power that works on its own official digital currency may have been tempted to put a stop to an activity that was beyond its control. The minors were therefore ordered to move without delay.
The United States, home to mining farms
By force of circumstances, mining farms sought their happiness elsewhere, and the United States turned out to be a perfect land of welcome. For example, the cost of electricity has become one of the cheapest in the world in Texas, a state that has undergone a strong “green” transformation – 20% of its energy comes from wind power. Additionally, Texas has an openly pro-cryptocurrency policy. New York State is a champion of hydroelectric generation, not to mention a few nuclear center. Washington also claims a strong presence of hydroelectricity.
For minors, this relocation to such states is therefore only good. In the first place, it reduces the costs of electricity consumption. In addition, it makes it possible to respond to the many detractors who have criticized the Bitcoin its damage to the environment.
Another reason for the attraction for the United States comes from the fact that this country has strongly prepared for the reception of minors with enormous investments in infrastructures to this, from the start of 2020. It was therefore possible to easily accommodate structures such as Antpool / Bitmain which previously operated in China.
Now, according to the study by Cambridge University, the ranking of countries in mining at the end of 2021 is as follows:
- United States: 35.4%
- Kazakhstan : 18,1 %
- Russia: 11%
- Canada : 9,55 %
- Ireland: 4.68%
- Malaysia: 4.59%
- Germany: 4.48%
- Iran : 3,11 %
- Norway: 0.58%
The place of Kazakhstan in second position could be threatened in the long term, the government having voted additional taxes for the miners from 2022. What is more, the strong presence of mines of coal in this country may have contributed to the bad reputation of Bitcoin ecologically.
What you must remember
- Following the measures taken in the spring of 2021 by China to build the mining activity on its territory, a large number of server farms have migrated to the United States.