The United States has become the world’s premier country for bitcoin miners, surpassing China for the first time in history. The change of leader was predictable after the PRC banned mining and, in general, all operations with cryptocurrencies. However, a published report from the University of Cambridge made this status official.
According to the Cambridge Center for Alternative Finance, in July the United States accounted for 35.4% of the bitcoin hashrate – this term refers to the total computing power of miners. And this is 428% more than in September 2020. China accounted for 67% of the global market in September last year. However, after the introduction of Beijing’s strict policy on cryptocurrencies in general, the leader simply could not help but change, and miners began to leave China en masse, continuing their activities in countries with the lowest price for energy resources.
The US is really profitable for miners looking for a new home. In the states of Washington and New York, hydropower is very developed, so the presence of large mining entities is also large here. In addition, miners are turning to nuclear power producers. In Texas, energy prices are among the lowest in the world, and this is a key criterion for miners, for whom energy payments are practically the only source of costs. Consumers also enter into agreements with oil producers using natural gas that would otherwise be released into the atmosphere.
The state is actively developing the renewable energy industry – as of 2019, up to 20% of electricity here was generated from wind turbines. Texas has a power grid with wholesale rates that change in real time. The consumer has the ability to quickly change the supplier, and the political power in the state is strongly in favor of the cryptocurrency industry.
The emergence of the United States as a world leader is not a spontaneous success, but the result of many years of preparation. Before bitcoin mining began on an industrial scale in America, some companies across the country were betting that with the right infrastructure, players from other countries could be attracted. When the bitcoin rate fell sharply at the end of 2017, specialized companies decided to take advantage of this opportunity and started organizing infrastructure projects. As a result, most of the mining equipment produced from May to December 2020 was sent to the United States and Canada.
The alternative to the United States is Kazakhstan, which accounts for 18.1% of the world’s crypto mining. However, some experts are confident that the country will not be able to maintain its position. After the ban in China, Chinese miners began to move here, transporting obsolete equipment. However, as it completes its term, mining companies will update it and move operations to the West. This will be facilitated by additional taxes for miners, which will be introduced in Kazakhstan in 2022.