The Chinese miners exodus is making the worried miners turn to Texas or at least consider it as the regime continues to clamp down on operations in the nation so let’s read more in our latest crypto news today.
Beijing is still issuing orders to shut down BTC mining operations and a lot of them are seeking friendlier regulatory environments overseas to base their operations. The reports showed that Yunnan as the fourth biggest BTC mining producer had been targeted in the regime’s latest crackdown. In what the industry sees as the great mining migration, a lot of these companies are looking towards North America and Texas specifically to base their mining facilities as per the reports by CNBC.
Texas has one of the world’s lowest energy prices and its share of renewables is growing over time. Texas is the nation’s leader in the wind-powered electricity generation industry and produces almost 30% of the US total as per the state comptroller reports. Texas has a deregulated power grid that allows customers to choose between power providers. Its political leaders and bankers are pro-crypto which makes it easy for miners to move there. Brandon Arvanahghi who worked as a security engineer at Gemini said:
“You are going to see a dramatic shift over the next few months. We have governors like Greg Abbott in Texas who are promoting mining. It is going to become a real industry in the United States, which is going to be incredible.”
Vice president of Poolin, Hong-Kong mining pool Alejandro De La Torre is planning an exit already due to the Chinese miners exodus:
“We do not want to face every single year, some sort of new ban coming in China. So we’re trying to diversify our global mining hashrate, and that’s why we are moving to the United States and to Canada.”
Arvanaghi continued explaining why Texas is the destination of choice and stated:
“Texas not only has the cheapest electricity in the U.S. but some of the cheapest in the globe. It’s also very easy to start up a mining company … if you have $30 million, $40 million, you can be a premier miner in the United States.”
Castle Island Ventures partner Nic Carter also said that with the current drop in hashrate, it seems likely that installations are being turned off in the country and he also thinks that about 50% of the entire BTC hashrate will leave China. Current estimates suggest that the market dominance is between 55% and 65% which is already falling. The actual hash rate for the BTC network is now at 114.5 EH/s.
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