Up to this point in time, China has always been the dominant country when it comes to mining bitcoin. Sadly, the region has done all it can to eliminate its standing in the industry, and now it looks like another nation – the United States – has opened itself up to become the world’s primary leader in the world of bitcoin mining.
China Has Been Outdone By the U.S.
China was – at one point – home to about 65 to 75 percent of the world’s crypto mining projects. It also is the home of companies like Bitmain and Canaan Creative, which are arguably two of the world’s largest providers of bitcoin mining equipment. For a while, it looked like the nation was unstoppable in the industry… Until China became hellbent on stopping itself.
For reasons that are not entirely clear, China has seemingly sought to eliminate the mining presence from its turf. While it has been argued many times that the country is looking to become carbon neutral, it is also stated by others that the nation is looking to eliminate all future competition to its new digital yuan currency and having bitcoin getting mined to such a degree certainly puts the latter in a desperate position.
In any case, the nation announced that it was no longer going to permit bitcoin or crypto mining projects within its borders, and as a result, all project managers that have called the country home over the past several years were forced to pick up and find new headquarters. Many have fled to neighboring regions like Kazakhstan, though in many ways, the United States has also become quite attractive given that the country offers a wide variety of regions with low electricity rates.
In addition, states such as Kentucky, Texas and Florida are welcoming these miners with open arms, claiming that having mining projects in their midst create jobs and build up the local and state economies. Thus, the U.S. has been establishing its latest digital mining sector, and according to the University of Cambridge, the nation now outdoes China and has taken the number one spot in the mining arena.
Will Regulation Get in the Way of Growth?
The real irony of the situation is that the U.S. appears to be gaining traction in the crypto space right as regulators are becoming more involved, which could put a damper on things. Figures like Gary Gensler – the head of the Securities and Exchange Commission (SEC) – have stated that crypto trading platforms and related companies will need to embrace regulation if they are to earn the trust of their customers.
In addition, the new infrastructure bill – worth more than $1 trillion – contains verbiage that will ultimately enforce a stronger hand when it comes to crypto taxation and suck up more money from crypto traders if it is passed.