The USA Reclaims Majority of Bitcoin Mining Capacity
One-third of the total bitcoin’s hash rate is now based in the United States of America. According to the Cambridge Centre for Alternative Finance (CCAF), the USA Bitcoin mining share has doubled between April and August from 17 % to 35%, in the same period, China’s share of Bitcoin mining had dipped from around 46% to 0% due to China’s governments’ crackdown on cryptocurrency. This represents a 428% surge from September 2020 to October 2021, according to CCAF.
The USA has become a premier destination for Bitcoin miners after Beijing’s crackdown
China’s share of hash rate has fallen from 67% to zero, since September 2020, due to China’s crackdown. Many Mining rig manufacturers shifted to North America and Central Asia. Half of Bitcoin’s miners went offline overnight. Miners started migrating to the cheapest place of energy sources and America.
Mao Shixing, the founder of F2pool, a global bitcoin mining pool, stated that the US had captured the largest share of computing power after losing China’s share of computing power for the bitcoin network. The low electricity costs in most of the America states led the companies to use surplus energy to benefit from the rise of bitcoin prices in 2021.
USA Provides Many Benefits to Miners
The primary reason for miners to relocate to the USA is two-fold, regulation and low-energy costs. US regulatory environment is rather “lassiez-faire”, where many governments are not concerned with the production of cryptocurrency. The primary concern of many municipalities are environmentally based.
Business Friendly Regulation
Us miners find a favorable regulatory environment for American BTC miners. Although, the biggest issue in front of the American regulators is adding pollution and carbon dioxide into the atmosphere due to minting bitcoin. Dutch economist Alex de Vries shared a Research report in the journal joule; he revealed that the US Bitcoin miners alone would emit around 18 million metric tons of carbon dioxide in the country, equivalent to approximately 3.7 million cars on the streets.
USA Mining Boom not Without Backlash
High demand for mining farms experienced in Northern US and Europe after China’s crackdown, said representative, mining rig of Ebang International Holdings. Grocery stores like H-E-B are putting cryptocurrencies into their stores in state of Texas.
Texas has some of the lowest energy prices due to it’s plentiful fossil fuel reserves. This along with economic benefits, such as low taxes has made it a hub for many data centers for many years. In addition, Texas has continuously added more solar and wind power electricity sources. Since 2019 more than 20% of its electric power comes from wind.
Texas will be the crypto leader.
Cryptocurrency is now coming to Texas grocery stores.
H-E-B is putting cryptocurrency kiosks into some Texas grocery stores.#cryptocurrency @HEB https://t.co/e4CNsSbd0s via @chron
Mining Capacity Increases in New York State
New York Times indicates that New York has also seen a tremendous surge in industrial sized mining operations. New York has the potential to generate more hydroelectric power. One such project, as the Times Union Reports, the Mechanicsville Hydroelectric Plant has been repurposed to generate electricity purely for mining. This has maintained a historic building, provided new jobs, and created a new high-tech industry in the area.
Bright Future for USA Bitcoin Mining
Many USA based companies are investing into cryptocurrency mining. Greenridge is attempting to present this new industry as “green” with their new investments into hardware research. Greenridge plans to become the first carbon-neutral Bitcoin mining company in the world. This will be completed using their own electricity production and negated with carbon credits, where necessary.
USA companies are finding ways to offset emissions from power plants. Crypto miners should rely on wind energy plants or solar-powered projects to avoid throwing millions of tons of Carbon dioxide into the environment.
Is Bitcoin Mining an Environmental Hazard?
The short answer is yes, but in many cases, no. Mining has gotten exponentially more energy efficient. Many companies have to fight the negative press from the current media’s view that it is “destroying the environment”.
China’s recent departure from the industry has reduced reliance on coal. China is the world’s largest coal-based energy producer. But still doesn’t negate natural gas from the Bitcoin mining electricity, despite being magnitudes cleaner and more efficient way to produce electricity.
Bitcoin mining can be completed with electricity from any source. The most efficient and least harmful means of producing electricity from a sustainable source, is hydroelectric power generation. Times Union Reports that Mechanicsville Hydroelectric Plant has been repurposed to generate electricity for bitcoin mining.
USA Bitcoin Mining Benefits
The future of USA bitcoin mining seems to be great. USA investment, innovation and environmentalists will combine to create an ecosystem unparalleled anywhere else in the world. Mining is just one of the necessary services to create a robust infrastructure for cryptocurrency to flourish. The USA legislative system punishes bad-actors and removing countries with known histories of human rights abuses, corruption from mining will further promote the growth and adoption of cryptocurrencies.
The primary benefits of USA bitcoin mining are as follows:
- Encourage growth of sustainably powered energy and develop a more decentralized power rid
- Create high-tech careers and jobs
- Revitalize areas where industry has been outsourced to other countries or regions.