- Chinese crypto crackdown accelerated manufacturers of miners to shift from China.
- China is slowly losing its grip as a bitcoin mining powerhouse.
- North America gears up to compete with China.
Beijing’s crypto crackdown rapidly accelerated manufacturers of miners to shift from China to North America and Central Asia. The crackdown also forced few miners to stop their operations completely with equipment manufacturers who are from China mostly.
Moreover, Kazakhstan from Central Asia is growing as an ideal destination after the country clarifies the mining regulations. In addition, Shenzhen-based BIT Mining has revealed a joint partnership with Kazakhstani company to invest in the country’s crypto mining data centers.
China Slowly Loses BTC Mining Powerhouse Grip
China is slowly losing its grip as a bitcoin mining powerhouse due to regulatory uncertainty. More so, the crackdown will likely affect the mining device supply chain. After the crackdown announcement only Inner Mongolia which is a key mining base has revealed draft regulations for business management.
Vice Premier Liu He made severe action on illegal securities activities that include crypto trading and mining. More so, the announcement forced the crypto market to wild swings over the weekend.
North America Gears Up to Compete With China
In order to control the Bitcoin mining field, North America gears up to compete with China with many cities delivering interest in leading the venture. In addition, Miami Mayor Francis Suarez explained recently that the US should mine more bitcoin for national security.
However, 90% of the activity is considered to be done overseas. Added to this, Suarez mentioned that the consumption of energy narrative on bitcoin mining could be changed since the country contains renewables.
Moreover, after Tesla, an electric vehicle manufacturer suspends bitcoin payments over the asset’s carbon footprint. CEO Elon Musk has met with miners over environmental concerns. Notably, the meeting resolved to form a Bitcoin Council Meeting to build sustainability efforts.