Pressure from the Chinese government could lead the Bitcoin mining business to change its decentralized nature. The state of Texas has a governor who supports the business and its electric bills are among the cheapest in the world.
China’s government actions could lead the Bitcoin mining business to change its centralized nature in the coming months. That country concentrates more than half of the world’s mining farms, that is, more than 65% of the hash rate of the pioneering cryptocurrency.
Due to such high concentration, the Chinese authorities are targeting this business. For this reason, more than half of the mining farms could leave the nation, leading to an unprecedented migration process.
Beijing has assessed the polluting power of the mining business throughout China, finding that 4 provinces concentrate this activity. The high emission of carbon dioxide on farms in some of these regions alarmed the Communist Party, which acted immediately.
The Communist Party Will Force Bitcoin Mining to Leave the Country
The Bitcoin mining business is clashing with China’s long-term plans. Therefore, this activity could change location, having as one of its destinations the state of Texas, in the United States.
The Chinese government manages the economy in a planned way, that is, they set the goals to achieve in 5 years. In this sense, all the country’s industries must aim for the goal that the “central plan” proposes.
One of China’s goals is to become “carbon neutral” by 2060. For that reason, they seek to develop a rigid plan to gradually reduce greenhouse gas emissions.
Industries powered by coal or other fossil fuels include Bitcoin mining. That could lead them to leave the country or move to regions with sources of green energy. In the case of the latter, those regions are already oversaturated with mining farms.
Miners May Operate in Some Regions Outside of China
The authorities have not detailed the process of shutting down mining farms, but Bitcoin mining would have to leave the country. One of the destinations with the most advantageous conditions is precisely the state of Texas, in the United States.
Former Gemini member Brandon Arvanaghi believes that Texas could become the new global epicenter of Bitcoin mining. He told the television network CNBC that that state has a governor who supports the business.
Additionally, the southern state’s electricity bills are among the cheapest in the world. Referring to the migration of Chinese miners to the United States, Arvanaghi believes that “we will see a dramatic change in the coming months.”
However, the outlook in the United States is not entirely rosy for miners fleeing China. Since Chinese citizens must face racism, it is unlikely that everyone will see this wave of mining industries well. Another problem is the severe damage that an unexpected winter caused to its infrastructure at the beginning of the year.
The Decentralization of Cryptocurrency Mining Is Underway
Texas looks like the perfect place for Bitcoin mining, but it is unthinkable that all the outcasts could settle there. In that sense, other regions closer to China could be among the destinations of mining farms.
This would allow decentralizing the mining activity, which would be positive for the pioneering cryptocurrency. The act of “spreading” the farms will prevent any government from trying to seize or harm Bitcoin.
By Alexander Salazar