Bitcoin miners are migrating to the United States

Released on 14.10. 2021

  • Coin with Bitcoin logo: consumer advocates generally warn against investing in the cryptocurrency because of the highly volatile prices. Photo: Nicolas Armer

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The tough crackdown on cryptocurrencies by the Chinese government is driving Bitcoin miners out of the country. You will find a new home where electricity is cheap. 2021

Cambridge (dpa) – In the lucrative calculation of the crypto currency Bitcoin, the USA has for the first time replaced China as the global market leader. This is evident from the latest figures from the Center for Alternative Finance at the University of Cambridge.

Over a third of the output for so-called Bitcoin mining now comes from the USA, while China in the Statistics has dropped to a no longer measurable proportion. With a market share of almost 4.5 percent, Germany is in 7th place worldwide.

A year ago, Bitcoin miners in China completed around three-quarters of all Bitcoin transactions that required a lot of energy devour. A month ago, the Chinese government issued a nationwide ban on crypto mining amid energy shortages. With this “mining”, users offer the capacity of their computers to check and encrypt transactions and are rewarded for this in the respective crypto currency. Beijing had raided crypto miners back in the spring. As a result, the miners began to flee from China en masse and made their way to the cheapest energy sources in the world.

«The whole narrative that China controls Bitcoin is now completely obsolete “, Boaz Sobrado, a London-based fintech data analyst, told CNBC. The US met many requirements for Bitcoin miners looking for a new home. In states like Texas, for example, energy prices are very low in a global comparison. “It’s a huge incentive for miners competing in an industry with low profit margins.” The USA is also rich in renewable energy sources.

After the end of Bitcoin mining in China, many miners also migrated to neighboring Kazakhstan, which now has a market share of 18, 1 percent comes. In third place is Russia (10, 2 percent), ahead of Canada (9.6 percent), Ireland (4.7), Malaysia (4.6) and Germany. Although the electricity prices in Germany are comparatively high, Bitcoin mining is worthwhile if the Bitcoin rate is as high as it is now.

Today the Bitcoin exchange rate was around 57.600 U.S. dollar. In mid-July, however, a Bitcoin was only around 31. 000 worth dollars. Because of these highly volatile prices, consumer advocates generally warn against investing in the cryptocurrency.

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