Bitcoin Mining Industry is Migrating From China to Foreign Countries
Bitcoin mining center is gradually migrating from China to foreign countries like northern Europe, North America, Central Asia.
In 2020, an easily overlooked phenomenon is that bitcoin mining center will silently move from China to foreign countries. According to the bitcoin mining map designed by Cambridge alternative financial center, in the second quarter of 2020, Kazakhstan’s mining industry accounted for about 6.17% of the average monthly hashrate of bitcoin, only slightly lower than Russia (6.9%) and the United States (7.24%), while China is still the undisputed No.1 (about 65%). In September 2019, China accounted for 75.62% in the global bitcoin mining industry.
In half a year, China’s crypto mining share fell by 10%. North America, North Europe, Central Asia, Southeast Asia, Iran, Russia and other places mentioned above account for this part of China’s loss.
For bitcoin mining, the cost of electricity is the key to the rate of return. The lower the electricity charge, the greater the return. Recently, Philip Salter, head of operations at Genesis mining, said that miners are moving from China to Nordic countries, namely Sweden and Norway, because “these countries are considered safer and more stable.”.
“If you don’t consider fees and taxes, the electricity charge here is the lowest in the world, and it’s almost carbon free, mainly composed of hydropower, nuclear energy and wind energy.”
He explained that the profitability of the company’s Boden data center in Sweden had more than tripled due to wet weather and the rising price of bitcoin.
According to the article published by Bloomberg. In addition, in November this year, Bitfury Holding BV, a Dutch blockchain company, announced an investment of $35 million to expand its Norwegian mining farm. In addition to northern Europe, Kazakhstan has also become a new center for bitcoin mining.
In June, Bagdat Mussin, Kazakhstan’s minister of digital development, announced that the Department plans to attract $738 million in investment for cryptocurrency-related activities by 2023. Up to now, there are 14 cryptocurrency mining that has brought in about $201.7 million in investment. Kazakhstan, which is dominated by thermal power, has a surplus of 4000 MW.
“There are a lot of local miners in Kazakhstan now. Our president’s brother is also mining bitcoin. There are also people from Greece, Germany, Japan, South Korea and Iceland.”
Said a Kazakh crypto miner. Kazakhstan’s major mining companies come from China, South Korea, and other countries, including the above-mentioned Genesis mining and Bitfury, which are all mining in Central Asia.