Many Bitcoin miners have gone to Kazakhstan due to the restriction on the activity in China, thus increasing coal use. Energy prices are lower in the United States, which is an advantage for digital miners.
In the last week, important events related to cryptocurrency mining have occurred. For example, a video has gone viral on social media shows a bulldozer destroying mining equipment in Malaysia.
Additionally, the hash rate within the borders of the United States has increased thanks to the immigration of Chinese miners. Many of them suffered repressive measures in China, so they looked for better opportunities to develop their businesses.
Malaysian Authorities Destroy Confiscated Mining Equipment
Malaysian authorities proceeded to destroy ASIC equipment with bulldozers. It is possible to see in a video, gone viral on social media, how an operator crushes the mining hardware.
According to different news media, the authorities had seized the equipment for illegally producing Bitcoin. That happened in Miri, on the island of Borneo, where they crushed a total of 1,029 mining machines. Those devices were worth the equivalent of USD 1.2 million.
Reports indicate that the equipment belonged to a person from that country, who had been stealing electricity for months. Besides, so far this year, the authorities have destroyed three places where miners housed their mining equipment clandestinely.
Coal-Powered Energy Gains Momentum in Kazakhstan
It is worrying that polluting energy-powered Bitcoin mining is a long way from ending anytime soon. Some reports on increased fossil fuel-powered energy production seem to indicate this.
Much of the miners who left China due to the restrictions on the business are going to Kazakhstan. That nation is increasing the use of coal to generate the electricity that powers Chinese farms on its borders.
As Kazakhstan produces 90% of its electricity from coal, the arrival of cryptocurrency miners will not change the situation much. No one knows the number of Chinese miners who will move to Kazakhstan, but their proximity suggests that there will be many.
The United States Becomes the New Epicenter of Bitcoin Mining
The United States is becoming the epicenter of Bitcoin mining for the advantages for digital miners and the business. Farm owners, low barriers and low energy prices are ideal for that activity.
Furthermore, the Bitcoin mining business represents an excellent opportunity to move towards the use of renewable energy. Contrary to China, the United States shows more transparency in the management of carbon dioxide emissions.
Until May, the United States had been the second country with the highest hash rate with 17%. The migration of Chinese miners to various states would be making it the world leader in Bitcoin mining. The weakening of the business in China started in 2019 but ended abruptly in 2021.
Miners’ Bitcoin Accumulation Cycle Begins
The market of the pioneering cryptocurrency seems to have started a new accumulation trend. The owners of Bitcoin mining farms are withdrawing funds from exchanges due to the low volatility of the crypto asset. That could lead to a possible rise in the price.
Data from Glassnode indicates that the cycle of massive sales of June has now concluded. At the time, there was a daily settlement of around 5,000 BTC on exchanges, but now it is less than half.
The positive profitability of mining is one of the reasons why miners have decided to sell less. The hash rate and the difficulty of the network make block processing easier. Thus, miners can mine and save more Bitcoin in the same period.
By Alexander Salazar