A few weeks ago, a logistics company confirmed to CNBC that they will be lifting around 3000 kg of bitcoin mining machines to Maryland in the USA. This company is located in Guangzhou in China. It offers international shipping to door delivery. This news came because of China’s crackdown on bitcoin mining in the country. All the mining farms were shut down in the entire region. Moreover, more laws are being implemented to prevent the implementation of new mining farms. There are a lot of opinions revolving around people for where the mining facilities should move to. With all these things happening, it seems that now the United States is becoming the next place for bitcoin mining.
China Suppression On Bitcoin Mining
The Chinese government was very clear with the reason for shutting down the bitcoin mining farms as it was consuming a lot of energy. It is known that bitcoin mining uses more power per year than the entire country of the Netherlands. This reason seems genuine from the government’s side. The Chinese government is now looking out for more ways to reduce its pollution footprint. One step to do so was the elimination of bitcoin mining from the country. The mining process uses fossil fuel energy and it is a big contributor to all the greenhouse gases.
Moreover, it is the reason for almost 70% of the greenhouse gases that are emitted in the world. They are the major cause of global warming and fossil fuels are the offender when we talk about an increase in pollution. Positive outcomes were seen as soon as China started eliminating bitcoin mining. The country recovered 8 gigawatts of power because of this.
U.S. – The New Mining Destination?
It is currently too soon to say or decide where the miners will now set up their shops. Shipping all the mining rigs to the United States of America doesn’t mean that it will be the next major mining destination. Possibly they are just storing those rigs there. The U.S. doesn’t have the highest cost of electricity which is an advantage but it doesn’t have the lowest cost either. Setting up the bitcoin mining rigs will result in a huge increase in energy costs. China was the ideal place for mining because of a couple of reasons. Now, while setting up the shops again, miners will have to see and examine their next place for the same factors and similarities for high profits.
One of the major factors that make China a perfect place for mining is the low cost of power. Mining is energy-intensive. The price of energy in China is low which is why it was easy for miners to turn that into great profits. It is thus evident that the next new destination should have low energy costs. An established supply chain is yet another factor affecting mining. The flow of technology in China is already established. Moving mining rigs here and there is not a hard task to do. Thus, this makes China a perfect place to set up all kinds of machines that are required. Several mining facilities such as Huobi Hall and BTC.POP have suspended all their operations in the country. BTC.POP will be conducting all its operations in North America and Huobi Hall is still looking to export all of its mining rigs overseas.