Cryptocurrency miners from China are now starting to settle in neighboring countries like Russia and Kazakhstan. As a result, they are coming back online to mine new bitcoin units and once again offer serious competition to miners in the United States and other bitcoin ports.
Miners in China start elsewhere
Not so long ago, Beijing decided that all mining should be banned in China, saying the dangers of Bitcoin mining were just too great to ignore. This is an argument that has gained traction in recent months as several analysts, industry leaders and even traders claim that cryptocurrency mining can somehow cause irreversible damage. the environment of the planet.
This attitude is shared by some of the industry’s most iconic figures. Perhaps the most notable example is Elon Musk, who really made headlines earlier this year when he announced that his electric car company, Tesla, would accept bitcoin payments for vehicles. However, that decision was quickly overturned when Musk decided he was concerned about the impact of crypto mining.
A few months later, Musk released a statement saying he would consider reintroducing bitcoin vehicle acceptance policies if miners used cleaner energy and cut emissions.
Shark Tank’s Kevin O’Leary has also said in the past that he will no longer buy bitcoin mined in China and said the country’s mining policy is not environmentally friendly. This is clearly an issue he no longer has to worry about, given how China has taken all necessary steps to ensure the ruin of its mining industry. The country has officially kicked out all crypto miners, and the once-largest Bitcoin region in the world has finally turned into a technologically barren wasteland in many ways.
The price goes up
But these miners do not give up without a fight. Yes, they have lost their own territory, but they are finding new ways to stay in business. Many have moved to other countries that do not ban mining projects, but welcome them instead. They are now back in the game, bringing Bitcoin back into high gear. As previously mentioned, the world’s leading digital currency by market cap has since regained over 80% of its lost hash rate. Typically, a jump of more than ten percent is considered a huge step forward.
It could also explain why the price of Bitcoin has seen a serious rally in recent weeks. Assets fell more than 50% during the chaos and unrest surrounding the mining exodus from China, and for a brief period Bitcoin traded below $ 30,000 – a huge drop from its historic high of $ 64,000. Now, however, the asset sells for over $ 47,000.