Cryptocurrency miners from China are now beginning to set up shop in neighboring countries such as Russia and Kazakhstan. As a result, they are coming back online to extract new bitcoin units, and they are again presenting serious competition to miners in the United States and other bitcoin havens.
Miners in China Are Setting Up Shop Elsewhere
Not long ago, Beijing ruled that all mining in China was to be banned, claiming that the hazards of bitcoin mining were simply too heavy to ignore. This has been an argument that has swelled in recent months, with several analysts, industry heads, and even traders alike claiming that in some way or another, crypto mining does irreversible harm to the planet’s environment.
This is an attitude that has been shared by some of the most prominent figures in the industry. The most notable example is arguably Elon Musk, who really made headlines earlier in the year when he announced that his electric car company Tesla was going to be accepting bitcoin payments for vehicles. However, this decision was soon rescinded when Musk decided that he was worried about the effects of crypto mining.
A few months later, Musk issued a statement saying that if miners were to utilize greener energy and if emissions were to go down, he would consider reinstating the bitcoin acceptance policy for vehicles.
Kevin O’Leary of “Shark Tank” fame has also stated in the past that he would no longer be buying bitcoin mined in China, saying that the country’s mining policies were not environmentally friendly. This is clearly a problem that he’s not going to have to worry about anymore considering how China has taken every step to ensure its mining industry goes kaput. The country has officially kicked out all crypto miners and what was once the most prominent bitcoin region in the world has ultimately turned into a technologically barren wasteland in many ways.
The Price Is Growing
But those miners are not giving up without a fight. Yes, they have lost their own turf, but they are finding new ways to stay in business. Many have moved to other countries that do not ban, but rather welcome mining projects. They are now back in the game and bringing bitcoin back up to speed. As noted, the world’s number one digital currency by market cap has since recovered more than 80 percent of its lost hash rate. Typically, a jump over ten percent is considered a giant step forward.
This could also explain why bitcoin’s price has been in a serious state of recovery over the past few weeks. The asset fell by more than 50 percent during the chaos and turmoil surrounding the China mining exodus, and for a brief while, bitcoin was trading below $30,000 – a huge drop from its all-time high of $64,000. However, now the asset is selling for more than $47,000.