Bitcoin Miners in China Pitching their Tent in Texas
Crypto miners in China have been forced to seek alternatives in view of China’s crackdown on crypto mining. Tokenhell had earlier reported on Thursday that Bitcoin miners in the country were looking for a clean source of energy to aid their mining activities. The ban on crypto mining in China comes on the heels of its decision to go green by 2060. China wants to opt for a clean energy source for power generation. Following this, it issued a directive last month ordering all mining activities to be stopped and forcing miners to look at Texas as a viable location for their activities.
Before the prohibition of mining activities, according to reports, China was responsible for approximately 75% of mining of the top crypto asset, Bitcoin. Until the ban, most Bitcoin miners were situated in China. Although why it bore most Bitcoin mining activities was because of its low-cost electricity, availability of expansive lands and safety. However, in the wake of the ban, the country has become hostile to Bitcoin miners, saying that all mining activities must be halted by the end of June. Consequently, miners have been prompted to seek out regions where mining is supported and embraced, with Serbia, Texas and some other regions being at the top of their list.
Texas to now Bear 50% of China’s Hashing Power
The state of Texas in the US is now one of the preferred locations where cryptocurrency miners are looking to re-establish themselves and continue their mining activities. When the ban was first issued in China, most mining companies stopped mining completely and sold their mining rigs at ridiculous prices. China is bothered about the high energy consumption and environmental hazards caused by mining activities. Hence, the ban; it intends to become carbon-neutral by 2060, according to reports. The ban also affected and caused a significant decline in the global hashrate or hashing power for Bitcoin mining.
Some miners have hinted at opting for volcanoes or manure as energy sources for crypto mining. El Salvador had also suggested it was going to mine Bitcoin which it recently made a legal tender with volcanoes. The reasons cited for China’s ban on crypto mining activities was also the major reason for Tesla’s discontinuance of Bitcoin payments for their electric vehicles. The CEO of Tesla, Elon Musk had made the bearish announcement last month. Although Tesla plans to rescind its decision if 50% of the energy used for Bitcoin mining would be gotten from a clean and renewable source.
Bitcoin Miners to Continue Mining Activities in Texas
Texas has become the preferred location for Bitcoin miners in China. The past few days have seen an influx of Bitcoin Mining companies such as BlockCap, Bitman, Argo Blockchain in Texas. Reports indicate that 50% of China’s hashing power may end up in the American state. Some miners indicate that this could be a turning point for the state. Furthermore, the benefits the American state offers to miners is low-cost electricity, pro-crypto politicians and a clean energy source. Meanwhile, a Bitcoin Mining Council was set up comprising institutional investors, crypto enthusiasts and miners to address the challenges faced in mining cryptocurrencies. The council is headed by Michael Saylor, CEO of MicroStrategy.
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