USA: The world’s new bitcoin mining hub

Already the second-largest mining destination in the world, America has easily emerged as the new darling of the bitcoin mining world — as a result of China’s crackdown on all of its bitcoin miners. 

The U.S. accounts for nearly 17% of all bitcoin miners on the planet as of April 2021. This represents a 151% increase from September 2020.

Experts say that America has an even bigger slice of the world’s bitcoin mining pie.

“500,000 formerly Chinese miner rigs are looking for homes in the U.S,” CNBC quoted Marathon Digital’s Fred Thiel as saying.

“If they are deployed, it would mean North America would have closer to 40% of global hash rate by the end of 2022,” Thiel added.

The new mining hotspot

America’s rising prominence is a simple case of just being there at the right time. For years, the U.S. has been quietly jacking up its hosting power.

U.S. mining operators took advantage of the crypto crash in late 2017. They beefed up the mining ecosystem and established a bigger hosting space all through the crypto winter.

COVID-19 and its impact

The pandemic may have shut down the economy. But the stimulus payments helped mining companies to get back on their feet again.

People felt the need to invest. And a lot of them found an opportunity and the potential in bitcoin mining.

The great American dream

What makes America appealing to displaced bitcoin miners is its geographic, political, and jurisdictional stability.

It’s also a plus that it is home to some of the world’s cheapest energy sources, many of which are renewable.

Because scale miners are in a low-margin industry where their only variable cost is usually energy, they’re incentivized to migrate where the cheapest power sources are. 

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/usa-the-worlds-new-bitcoin-mining-hub/