Thursday, September 29, 2022

Bitcoin‌ ‌Miners‌ ‌May‌ ‌Migrate‌ ‌To‌ ‌Texas,‌ ‌After‌ ‌China’s‌ ‌Crackdown‌ ‌

As China toughens crackdown on crypto mining, it appears the Bitcoin miners would migrate their business to Texas.

On May 21, while announcing a ban on crypto-related activities in the country, the Chinese government ordered the data centers, industrial parks and power stations to not provide their services to those projects that are linked to the cryptocurrency.

The latest crackdown on crypto-related activities has forced Bitcoin miners to migrate their businesses to other countries.

As per the market experts, Texas could be a game-changer for Bitcoin miners. It is being assumed that with the lowest energy prices around the world, the state would become the hub for mining bitcoin.

Notably, 20 percent of Texas’ total power is generated by wind.

Recently, during an interview with CNBC, Brandon Arvanaghi, a former security engineer at Gemini, said, “We have governors like Greg Abbott in Texas who are promoting mining. It is going to become a real industry in the United States, which is going to be incredible.”

Further, he stated, “It’s also very easy to start up a mining company … if you have $30 million, $40 million, you can be a premier miner in the United States.”

According to the reports, apart from the United States, the miners making their exit from China are also looking to migrate their businesses to Central Asia and Canada.

While sharing his views on China’s recent crackdown on crypto mining activities in the country, Alejandro De La Torre, vice president of Poolin, specified that due to China the mining industry has to always face a new ban. In order to diversify the global mining hashrate, the miners are planning to shift to other countries around the world.

Mining Bitcoin is an energy-consuming task. The miners require heavy computer calculations to process a transaction. While doing so, the computer uses over 120 terawatt-hours of energy, every year.

A report published by the Cambridge University specifies that Argentina, alone does not use that much energy which bitcoin mining process uses.

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