China will be challenged in the Bitcoin mining space in the coming weeks due to the number of countries entering the sector.
China is in the lead when it comes to talks about Bitcoin mining because it possesses some qualities that give it an advantage over other countries. Ranging from cheap electricity to cheap labor and the likes, little wonder the country is in control of the world’s hashing power. Running a mining operation in China has more pros than cons, but with the rate at which countries are entering the space, it won’t be long before the country is eventually displaced.
Bitcoin mining set to become tougher as the years roll by
When Bitcoin was first created, mining didn’t need much power as people could mine using their personal computers or have a little miner set up in their homes.
As more people began to join the network, mining Bitcoin became complex as the network became congested, and the miners were consuming more electricity. Also, people had to dump their computers previously used for mining because of the long time it took to solve the mathematical equations and earn the rewards.
Even though it looks like it is very much hard to mine Bitcoin, it will still get harder and tougher as only 21 million Bitcoin can ever be in existence. With more miners jumping into the mining network, things have been predicted to get tougher.
Also read:Miners have not been left behind in the change over the years as they have been forced to get better and faster mining equipment to compete with the modern-day miners. The bottom line of all this is that to compete as one of the mining powers across the world, miners need to have access to electricity, labor, speed, and up to date mining equipment, all of which China possess.
The Chinese government encourages Bitcoin mining and blockchain startups
In a report at the end of 2019, it was discovered that China produced close to two-thirds of the total hashing power across the world. Even though the Chinese government was once averse to crypto and blockchain technology, they have since turned to technology.
The Chinese government is presently encouraging blockchain and Bitcoin mining centers to spring up in the country’s core areas. Another reason why Bitcoin mining is on the rise in China is that the government has one of the globally advanced technological hubs across the globe.
China has hydropower, a form of very cheap electricity that serves the whole country. With Bitcoin mining requiring much power, one can safely assume that this department has them covered.
A significant area where the government has encouraged miners to move their base of operations to the Sichuan province in the country as the area boasts of one of the best power production locations.
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