Crypto miners flee to Russia and Canada, but Chinese authorities may lift DailyCoin mining ban – News Couple

Crypto miners flee to Russia and Canada, but Chinese authorities may lift DailyCoin mining ban

Crypto miners flee to Russia and Canada, but Chinese authorities may lift mining ban

  • ChinaThe bad touch of cryptocurrency caused a major mining exodus, forcing most of the miners out of the area
  • Miners are welcomed by Russia, the United States, Canada and Kazakhstan, and now they are the top Bitcoin hashrate contributors
  • These areas offer favorable policies for mining, along with cheap consumer electricity and perfect weather
  • There are rumors that China may rescind its mining ban. Will we see miners return to China?

In May 2021, China unleashed some of the biggest swings in bitcoin history. After declaring bitcoin mining illegal, the price of bitcoin fell from 60k to 29k as the bitcoin hash rate fell.

China, which previously contributed 45% to the global bitcoin hash rate, is now adding nothing to the bitcoin mining pool. The Chinese ban triggered what is now being referred to as the Great Mining Migration, the movement of bitcoin miners from China to other regions.

In a desperate attempt not to stop working, Chinese bitcoin miners have turned to other countries. Bitcoin’s hash rate has recovered to its highest point since the ban in May, and the price of Bitcoin has reached a new all-time high.

New crypto havens

New mining havens, the United States, Kazakhstan, Russia and Canada, have helped restore Bitcoin’s hash. The United States now contributes 35% of the global hash rate, while Kazakhstan currently ranks second with 18% of network mining.

Russia now contributes 11.2% and Canada 9.6% to the global Bitcoin hash rate. Moreover, these regions have proven to be welcoming to bitcoin miners as they provide electricity to consumers at low cost with crypto-friendly policies.

The Russian Siberian region of Irkutsk has received the majority of bitcoin miners in the country. Siberia is able to support bitcoin mining because it has an abundance of suspended hydroelectric power (estimates are now only 20% used), making it a favorite destination for environmentally conscious miners.

The region’s climate is also ideal for cooling the large numbers of ASICs in the industry. The Russian government has welcomed miners even though they have banned the use of bitcoin as a currency.

The scenario is almost identical in Canada with perfect weather and an abundance of consumer electricity. In June, BlackRock Petroleum announced a deal that, if successful, could attract the lion’s share of the bitcoin mining industry to Canada.

on the flip side

  • BitcoinThe need for electricity remained the Achilles heel
  • Cities in Iran have suffered from several blackouts Miners in the area
  • In the United States, local authorities have raised concerns about the impact of bitcoin mining on ordinary electricity users

What happens if China lifts the ban on mining?

Since bitcoin hit a new all-time high, rumors have been swirling that China might be looking to reverse the ban on crypto mining. The rumors likely gained steam after China’s National Development and Reform Commission said it would add “virtual currency mining” to the list of scrapped industries only after it got public options.

Days later, the commission retweeted the news that the United States had overtaken China to become the largest bitcoin mining country. Many interpreted this as China regretting its decision to ban cryptocurrency mining. So, what will happen if China reverts to its ban?

When China announced a crackdown on bitcoin mining in May, Kevin Pan, CEO of Chinese cryptocurrency miner Poolin, stated, “We decided to go out at once. [and] For everyone. [We’ll] Don’t come back again.”

The cost of moving a company along with its massive mining equipment is sure to be onerous. So, returning to China just months after the mining companies were forced to leave would not be an economically wise decision.

In addition, Chinese manufacturers of cryptocurrency mining equipment such as Bitmain have stopped shipping mining equipment to mainland China. Even if a country reverses its ban on mining, there is no guarantee that mining will not be banned again.

The best we can see is the uprising of new mining pools in China rather than the return of the Chinese miners who fled during the Great Migration. The cost of emigrating and returning to China will not be worthwhile for most mining companies.

Why should you care?

It is very unlikely that we will see Bitcoin miners return to China after its ban. However, the goal of crypto mining should now be to reduce their carbon footprint as they transition to greener energy sources.

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