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(Kitco News) – Cryptocurrency miners have been based in China for a very long time and no doubt some will continue to mine there. There could be a new Sherrif in town as the previous bitcoin-friendly Beijing wants them out. China was responsible for more than 50% of the world’s mining capacity although it is not confirmed that is the case now after the clampdown.
In May, the Chinese government called for a severe crackdown on bitcoin mining and trading, which kicked off what is commonly known as “the great mining migration.”
It has been said that Texas could be the next big destination for crypt miners as much of the state’s electricity is made through renewable means. As of 2019, 20% of its power came from wind, and with the massive amount of solar farms there it could become attractive due to the cheap power source.
Just recently Telsa owner Elon Musk has had issues with the sustainability of crypto mining and after a brief hiatus, he has said Telsa will start accepting payment in bitcoin for the cars once the mining industry becomes sustainable again.
Brandon Arvanaghi, who was previously a security engineer at crypto exchange Gemini said “You are going to see a dramatic shift over the next few months,” adding “We have governors like Greg Abbott in Texas who are promoting mining. It is going to become a real industry in the United States, which is going to be incredible.”
It is clear to see the Chinese government’s threats have worked. Castle Island Ventures founding partner Nic Carter said “Given the drop in hash rate, it appears likely that installations are being turned off throughout the country,”. De La Torre, vice president of Hong Kong-headquartered mining pool Poolin noted “we’re trying to diversify our global mining hash rate, and that’s why we are moving to the United States and to Canada.”.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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