The United States of America currently leads the world ranking of hash rate. El Salvador, Argentina, and Paraguay are ready to welcome new miners to carry out their activities there.
The Bitcoin miner relocation that started this year will continue into 2022 and the hash rate will get even more geographically distributed as the industry establishes operations in new locations. Looking towards next year, the analytical company Arcane Research presents Latin America as one of the most prominent regions to generate a good mining rate.
Before China’s prohibition on Bitcoin mining, the country generated roughly 70% of Bitcoin’s hash rate. On the other hand, the United States of America left the Asian country behind, concentrating at least 35.4% of the mining power in October, after the massive migration of miners from the Asian giant.
Along with this new panorama, Arcane points out in its most recent report, the relocation of miners will continue next year, and many would settle in Latin America.
In parallel with Arcane, in a recent report, in 2021 Bitcoin miners became nomads, and that the search for a new home continues. Many miners could move to El Salvador, where there is already a plan to offer opportunities to mine Bitcoin with very cheap energy, 100% clean, 100% renewable, and zero emissions. Nayib Bukele said in the middle of the year that the country would take advantage of volcanic activity to carry out mining activities.
Argentina also shows itself as a Latin country with potential for Bitcoin mining. The Canadian company Bitfarms Ltd. is advancing its strategies to build a gigantic Bitcoin mining center in this country, a project in which it has been working since October last year.
There is also Paraguay, whose government expressed interest in exploiting the mining business in its territory. Due to the prominent sources of energy the nation has, many now consider it a paradise for Bitcoin mining.
Bitcoin the Best Protection Against Inflation
On the other hand, the Arcane Research report aims at 2021 as a year of rising inflation in the United States of America, reaching its maximum level in the penultimate month of the year. The country’s consumer price index (CPI), corresponding to November, showed an increase of 0.8% and brought the inflation rate to 6.8%, which is the maximum in almost 40 years.
The chairman of the US Federal Reserve, Jerome Powell, acknowledged that inflation would hit the population indefinitely and admitted that the Central Bank created dollars from scratch at an unprecedented rate. The measure reacts to various tools used by the government to restore the economy amid the coronavirus pandemic.
The Fed has also highlighted that the rate of price increase will crumble down below 3% by the end of 2022, but some economists believe that inflation will not recede as quickly. In that sense, bitcoin adoption would increase, as the crypto asset is considered a haven asset. This situation takes place because its value increases over time and, therefore, it is increasingly profitable for miners.
By: Jenson Nuñez
