Bitcoin Mining Shifts Axis
Bitcoin Mining Shifts Axis The world’s largest cryptocurrency asset manager said on Tuesday that Bitcoin production was in a trend of moving from China, which is now number 1 in the world, to the North American region.
Barry Silbert, the founder of New York-based Grayscale Investments, relayed his observations on the matter to some investors in an online presentation but did not explain the reasons for the shift.
Many mainstream investors, such as pension funds or asset managers, have been known to approach bitcoin negatively for reasons such as extreme volatility, security problems and a lack of transparency.
Chinese Bitcoin miners control 2 in 3 of the network’s total trading power, according to a study last year.
This dominance enabled Chinese miners to produce a much larger number of coins, while at the same time severely increasing the demand for mining equipment produced in the country.
“What I saw recently, even in the period of 3 to 6 months, were attempts to get all this mining business out of China and try to move more into the U.S. and Canada region,” Silbert said in a comment on the matter.
Bitcoin miners are generally known to be firms that use high-powered computers. Because of the power of computers, electricity consumption is going to a serious extent. This leads to a shift to countries where electricity is cheap. The computers solve complex math problems in the Bitcoin network, completing the puzzle and gaining coins by outstripping their competitors.
With the price of Bitcoin rising to $ 10,300 on Tuesday, miners can say that $ 6.7 billion of Bitcoin is produced each year.
The regions where miners gain the most are generally low-populated and colder places, such as the Nordic countries or Canada. Due to the enormous amount of heat produced, cooling costs in these countries are also reduced.
Mining companies expand their presence in the U.S
It was recently revealed that two major companies, Whinstone us and Northern Bitcoin, had begun building the world’s largest cryptocurrency mining facility on 100 acres of land in Texas. Not only these companies, but already many companies are in a rush to expand their presence in the United States. Riot Blockchain, a cryptocurrency mining company that was last listed on Nasdaq, announced today that it has installed more than 1,000 new mining devices at its facility in Oklahoma City.
Chinese firms like Bitmain are among the world’s largest in Bitcoin mining and mining machinery production… another big investor, Canaan, launched an IPO in November but hasn’t met much investor demand.
Giant companies that manage $ 3.1 billion worth of cryptocurrencies, such as Grayscale, are now trying to attract bigger investors to the sector.
Last month, the company reached the position of being the first digital currency investment vehicle at the U.S. Securities and Exchange Commission (SEC).
That means the company’s cryptocurrency products will be reported to the same standards as funds traded on other major exchanges.