America Dominates Bitcoin Market: Bans in China drive all cryptocurrencies out of the country
In September 2019, miners in China accounted for 75% of the total Bitcoin coin mining activity, and after the measures introduced by the Chinese government, the USA now becomes dominant with more than a third of the total power of the Bitcoin network.
Following the introduction of initial restrictive measures against Bitcoin miners in China, it was rumored that large mining farms were looking for a new location, in order to continue mining in peace.
Texas and Kazakhstan were in the story, as the most serious options.
Liberal Texas for BTC mining
Texas is known for liberal regulations for working with cryptocurrencies, as well as low electricity prices, which are two very important items when it comes to choosing a location for a new crypto-farm.
On the other hand, Kazakhstan is the most logistically logical choice, because it is a direct neighbor of China, and it has a large number of thermal power plants that rely on coal, which means a low price of electricity.
According to the Cambridge Bitcoin Consumption Index(CBECI), Bitcoin miners in the U.S. make up 35.4% of the total global BTC hash rate distribution.
According to the same source, Kazakhstan is second with 18%, followed by Russia with 11%, as a new player, whose market share is growing.
In essence, these three nations have achieved the largest market share since China imposed serious restrictions.
Mass migrations of miners
In June, in the midst of restrictions, the fifth-largest crypto-community of miners(mining pool) BTC.com left the territory of China and moved its business to Kazakhstan.
At that time, BTC.com accounted for 10.4% of the total validation of Bitcoin blockchain blocks.
It is also interesting that the CBECI index shows that the percentage of Chinese miners has dropped to 0%, which is simply unbelievable.
Given such a large number of miners, we are pretty sure that there is a good percentage of those who still mine Bitcoin, but below the radar.
Of course, one should be careful, because China, and realistically, no other country in the world looks favorably on those who do not respect the law, so the Malaysian police have confiscated more than a $1.3 million cryptocurrency digging machine.
In addition to the large migration of crypto-miners from China to the United States, American miners such as Argo Blockchain, Riot Blockchain, Marathon, and many others took advantage of the situation and bought large quantities of mining rigs from Bitmain and MicroBT, which regularly supplied the Chinese market.
In 2021, the aforementioned Riot Blockchain tripled its capacity from 2,457 Bitcoin coins excavated in 10 months.
Ohio and Texas as main oases
In addition to Texas, another potential destination is the state of Ohio, also due to the popular price of electricity, as well as the fact that BIT Mining, a company specializing in Bitcoin mining, has entered into a joint project to build a huge plant for 85 megawatt Bitcoin companies, with Viking Data Centers, which are developing data centers focused on crypto miners and the necessary infrastructure.
In this way, not only will Ohio get a large Bitcoin mining facility, but it will also provide the necessary infrastructure for all those interested.