China’s crackdown on Bitcoin mining operations hasn’t abated yet, the Asian country is fiercely calling for a total halt of miners still in operation.
China has been the domicile of about half of the world’s Bitcoin mining operations. The country however does not want to continue inhabiting miners as it raises concerns over environmental factors.
Reports from CBNC estimated over 75 percent of mining operations globally are conducted in China. Four provinces in the country Xinjiang, Inner Mongolia, Sichuan, and Yunnan focus squarely on mining. While Inner Mongolia and Xinjiang operate with coal sources Sichuan and Yunnan depend on regional hydroelectric sources.
The government has asked the miners to halt operations as the government wants to install a carbon-neutral policy by 2060. However, some miners have failed to heed the instructions and maintain illegal mining. The response of the Chinese government to this disobedience is threats to cut out their access to electricity.
The Implications of China’s Bitcoin Ban as Miners Seek Solace in Texas
The ban of cryptocurrency mining in a powerful nation like China would generate a lot of problems. One of the most observed consequences is the massive drop in Bitcoin hashrate to 65 percent early this year. Xinjiang alone is estimated to be a 35 percent contributor to Bitcoin’s hashrate.
Several Bitcoin miners are gradually shifting their operational base to Texas which comes in as a viable alternative location. Renowned crypto-based companies like Bitmain, Blockcap, and Argo Blockchain have predicted that half of China’s hashrate would eventually migrate to Texas.
Didar Bekbauov, the founder of Kazakh mine provider Xive opined that Texas is one of the cheapest electricity locations in the world. He further stated that $30 to $40 million was enough to make one a Premier miner in the United States. However, the most important reason is the development infrastructure in Texas that aligns with renewable energy.