With China suddenly becoming an anti-bitcoin mining state, many are wondering where all the country’s present operations will relocate to. Some say Texas, while others suggest Wyoming. Either way, many China-based crypto mining firms need a new home, and America is looking better and better every day of the week.
Bitcoin Miners in China Are Having to Leave Soon
China has always had a rather up-and-down relationship with cryptocurrency. The country banned both initial coin offerings (ICOs) and crypto exchanges in the year 2017, and despite being a haven for crypto miners of all kinds, Beijing has made it quite clear in recent weeks that it does not want these companies around anymore.
So, where will all these companies go? That is a question that is going through several analysts’ minds right about now, and some appear to have their sights set on areas that have declared mining legal and profitable for their communities. At the top of the list is Texas, which allegedly boasts some of the lowest energy prices in the world.
In addition, the state is becoming a leader in the field of renewable energy, with approximately 20 percent of the state’s electricity now coming from wind sources. Brandon Arvanaghi – a former security engineer at the Gemini exchange in New York – says:
You are going to see a dramatic shift over the next few months. 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.
It is estimated that anywhere between 65 and 75 percent of all mining firms, at one point, called China home. Many were stationed within areas such as Xinjiang, Inner Mongolia, Yunnan, and Sichuan. The latter two areas are known for hosting a wide array of renewable energy sources, while the former two have taken a lot of guff in recent years given their reliance on coal and standard fossil fuels.
Inner Mongolia has been particularly hit hard by Beijing’s latest mining rules, with the city giving all miners in the area approximately two months to leave and find new stations given that very few of the region’s enterprises have managed to adhere to the energy regulations that Beijing has set forth.
This Will Be a Steady, Slow Process
Nic Carter – the founding partner of Castle Island Ventures – believes that the ceasing of all bitcoin mining in China is not going to happen overnight, and traders should expect a slow process given how much business the country has attracted over the years. In an interview, he states:
It seems like we are going from policy statement to actual implementation in relatively short order. Given the decrease in hash rate, it appears likely that installations are being turned off throughout the country.