The US Becoming a Preferred Destination for Crypto Miners
The Chinese government’s crackdown on Bitcoin mining is proving to be a windfall for the US. Many crypto mining organizations have now established their businesses in the US. According to the available data, mining activities in the country have doubled in the last couple of months. This increase has directly translated into a larger 35.9% market share that the US now enjoys in the crypto market.
According to the mining experts, friendly cryptocurrency regulations and the availability of a huge supply of power at affordable rates are attracting more cryptocurrency mining firms to set up their base in the US. China was the undisputed leader of crypto mining firms till last year. But, it has lost its charm among the stakeholders by taking strict action against cryptocurrency miners. This crackdown has forced companies to look west and find locations that offer both friendly policies and cheap electricity to facilitate their operations.
Other significant reasons that have facilitated the exodus of mining companies to the US are its democratic structure of governance, protection of intellectual property rights, and a dynamic judicial system. However, it is important to know that these cryptocurrency mining firms are being criticized for the excessive use of electricity. Environment activists in the US are up in arms and flaying the crypto mining firms for their damaging impact on the environment.
The excessive use of electricity has been one of the most contentious issues plaguing the prospects of the entire cryptocurrency industry. Although stakeholders in the ecosystem are trying to switch over to other efficient methods of mining digital currencies, there have been no credible breakthroughs yet. Many firms that have migrated from China to the US see this coming full circle – a couple of years back, these companies had migrated from the US to China for cheap labor and electricity.