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| The number one destination for Bitcoin miners is America |
The United States is now the number one target for bitcoin miners, overtaking China for the first time. Although it has moved in this direction, new data from the University of Cambridge makes it official.
According to data from the Cambridge Center for Alternative Finance, as of July 35.4% of Bitcoin hash (an industry term used to describe the collective computing power of miners) was in the United States. This is a 428% increase over September 2020.
Twelve months ago, China was far ahead of the market in terms of computing power. But Beijing's crackdown on cryptocurrencies in the spring led to the collapse of half of the world's cryptocurrencies overnight.
Miners began to flee en masse from China in search of the world's cheapest energy in what is known as the "mining migration". Many of them eventually went to the United States.
The latest data from Cambridge does not include China's average monthly share of global retail sales in July, a notable reversal of the situation in September 2020 when China accounted for about 67% of the market.
The United States offers many attractions for minor immigrants looking for a new home. For example, states like Texas have some of the lowest energy prices in the world, which is a great incentive for miners to compete in low-profit industries.
The United States is also teeming with renewable energies. Washington state is home to hydroelectric mines. New York produces more hydropower than any other state east of the Rocky Mountains.
At the same time, the share of renewable energy in Texas has increased over time, and in 2019, 20% of its energy will come from wind power. The Texas grid continues to rapidly add more wind and solar power.
The US dominates the Bitcoin mining industry
In addition to lowering electricity costs, some US states like Texas also have crypto-friendly politicians and an ample supply of conservation infrastructure.
The state has an unregulated network with instant, real-time prices so that customers can choose between electricity providers. Most importantly, political leaders support cryptocurrency.
When Bitcoin crashed in late 2017, there was very little demand for large Bitcoin farms.
American miners seized the opportunity and used the money to build a mining ecosystem in the United States.
In the past 18 months, the mining infrastructure in the United States has grown significantly. It is hoped that mining operations moving to North America will increase significantly, especially in the United States.
Companies like North American miner Core Scientific continue to build storage rooms to ensure new equipment can be shipped.
Most new devices manufactured between May 2020 and December 2020 are shipped to the United States and Canada.
Mature capital markets and financial instruments related to the mining industry have also played an important role in the rapid growth of the industry in the United States.