In September of 2021 Chinese regulators issued a blanket ban on all crypto transactions and mining. This resulted in a huge shift in where the world’s bitcoin mining was done.
From the early days of bitcoin China has dominated the share of global hashrate – a metric used to determine who is contributing the most computer power to the shared mining pool. China’s early dominance was the result of cheap labor, cheap energy, and weak regulations.
In September of 2021 when China decided to ban all crypto activities, the balance of power was immediately shifted. The USA became the leading crypto mining destination. This was in large part to it’s trusted property rights and rule of law. When a country bans your business practice, people tend to flock to safety, and that’s what the United States represented for crypto miners.
Other leading countries are Kazakhstan, Russia and Canada. These locations all have 3 crucial factors for crypto mining. Cold weather, which helps cut down on cooling costs for the mining rigs. Cheap energy, which is essential for competing with other miners across the globe. Wide open land, which allows for large scale mining operations to be built.
Crypto trading has also become increasingly popular in recent years. Sites like https://bitiq.app/ have made this increasingly accessible for beginners.
With more crypto regulation coming in the near future, it will be interesting to see how everything plays out in the years ahead. Will there be a country that becomes a crypto hub? Will the market become even more fragmented around the world? Only time will tell.
