Tuesday, October 4, 2022

U.S Has Been Declared the Bitcoin Mining Capital of the World

After the crackdown on Bitcoin mining activities from its previous biggest mining hub, China, the question in the minds of many has been where would large-scale mining operations be moved to. Gem Mining CEO, John Warren reckons that the U.S might be just the place.

For a long while, China was known to be the city with the largest mining operations. The country was recognized as the producer of about two-thirds of the world’s Bitcoin (BTC). The cheap cost of electricity and operational hardware were some of the reasons for this.

However, mid-year 2021 saw a fall in the amount of mining carried out in China until there was a total fallout just before the end of the year. The government withdrew licenses belonging to companies involved in mining and closed down their operations.

Chinese miners began a search for appropriate accommodation for their mining facilities. Countries like Russia, Canada, the U.S, and Kazakhstan with cost-effective electricity started to experience a rise in the attention it gained from such miners, with more of these miners paying special attention to the United States.

In a discussion with Yahoo Finance Live, John Warren explained how this migration to the U.S might be a positive thing for the nation. He went ahead to talk about the energy expended while mining and the exemption of tax from product or service sales.

Texas Experiences Massive Bitcoin Mining Shift

Major cities serving as the location of these mines are Texas and Georgia located in the Southern parts of the United States. Shipments of miners’ equipment are constantly entering Texas, and the governor has even strengthened the migration by making it part of his campaign for re-election.

In January, the first mining farm was inaugurated in Fort Worth, and according to Caleb Ward, Co-CEO of Geosyn Mining, it is just the tip of the iceberg when compared to the huge mining activities in the outskirts of the city. He said he is expecting 530 mining machines in his facility by March.

Although there are still speculations as to whether this shift in the direction of Texas will be good or bad for the country, one thing is obvious, the US dominance in crypto mining can no longer be disputed.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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