Why don't American Companies make Bitcoin Miners?

[androyster]

Or ANY miners for that matter?  Cheap labor?  Automation?  It seems to me that we have the tech.  It's not rocket science.

[LittleBitFunny]

They can do but they have to bear a lot of cost for doing that.
Bitcoin mining requires a lot of energy. So anyone who wants to set up a mining farm will try to set it up in a place where electricity price is relatively cheap and mining equipment is available at low prices. That's why most the miners prefer places like China, Cyprus where electricity prices are relatively low.

[plen]

They can do but they have to bear a lot of cost for doing that.
Bitcoin mining requires a lot of energy. So anyone who wants to set up a mining farm will try to set it up in a place where electricity price is relatively cheap and mining equipment is available at low prices. That's why most the miners prefer places like China, Cyprus where electricity prices are relatively low.

I think he was asking why the USA has no mining machine manufacturers.

I believe it probably does have to do with labour. It also could be tariffs on certain stuff that is required to manufacture them.

[bitmover]

Bitcoin mining requires a lot of energy. So anyone who wants to set up a mining farm will try to set it up in a place where electricity price is relatively cheap and mining equipment is available at low prices. That's why most the miners prefer places like China, Cyprus where electricity prices are relatively low.

This is the correct answer.

As we can see in the chart below, the electricity cost per Kwh in USA is about 50% higher than China.


https://www.ovoenergy.com/guides/energy-guides/average-electricity-prices-kwh.html

I don't know why we don't have many miners in India, where it is also cheap. But I think China has one additional advantage: They have some of the biggest hydro plants in the world. Energy is probably much cheaper near those hydro plants.

[mk4]

I'm pretty sure there are a few American companies that make miners as well; it's just that as far as I know, they're just significantly more expensive.

As for why China is mostly the best place to buy miners: I don't have any sources to back this up, but I'm pretty certain it's the same reason why China is mostly the go-to place for mass manufacturing of pretty much anything— I think it's just simply because labour and materials are simply far inexpensive in China.

[Wexnident]

Here is your American miner
https://www.businesswire.com/news/home/20201203005229/en/Titan-Establishes-First-Enterprise-Grade-Bitcoin-Mining-Pool-in-North-America

Did I get that right? I might be wrong so do correct me I just googled American Bitcoin miner. It seems like it started mid January but I never really saw any updates on it after that Dec announcement.

As for why America has none (or mostly, since what I posted seems to be one), Others have already pointed out, cheap electricity, labor, maybe also land costs for establishment as well? In general I guess, it's just more advantageous for mining farms to be established in China than in other countries (even if you consider it just with electricity alone).

[amishmanish]

Multiple reasons.

Tech-wise, none of them were as good as Bitmain's design in the beginning. So Bitmain took the lead. The biggest of semiconductor fabrication facilities are not American and not close to the US mainland. Chinese companies have a lead there too.

Bitmain uses most of its best miners to earn bitcoin and thus had a great revenue stream to rely on. Make miners, deploy (with the cheapest energy cost), earn the most BTC. Sell, re-invest for better tech. Repeat. Bitmain went from 16nm for S9 to 7nm fabrication within 3-4 years. This is probably the fastest up-scaling of a semiconductor product line ever.

American companies never had that kind of revenue stream and support to re-iterate designs and re-invest.

Here is your American miner
https://www.businesswire.com/news/home/20201203005229/en/Titan-Establishes-First-Enterprise-Grade-Bitcoin-Mining-Pool-in-North-America

OP is talking about miner manufacturers. Mining farms mostly just use the most efficient miners out there. Which are almost always Bitmain manufactured.

[Reatim]

They can do but they have to bear a lot of cost for doing that.
Bitcoin mining requires a lot of energy. So anyone who wants to set up a mining farm will try to set it up in a place where electricity price is relatively cheap and mining equipment is available at low prices. That's why most the miners prefer places like China, Cyprus where electricity prices are relatively low.

I think he was asking why the USA has no mining machine manufacturers.

Indeed this is what i also understand from the title itself that Mining rigs is what OP is pointing and not the literal mining operations.

I believe it probably does have to do with labour. It also could be tariffs on certain stuff that is required to manufacture them.

Well of course LABOR is one of the main reason because the cost is really high in countries like US and Europe .
and also good point that the Tariffs in trading is considered as well.

But in competence ? US has the resources doing such.

[Lorence.xD]

They can do but they have to bear a lot of cost for doing that.
Bitcoin mining requires a lot of energy. So anyone who wants to set up a mining farm will try to set it up in a place where electricity price is relatively cheap and mining equipment is available at low prices. That's why most the miners prefer places like China, Cyprus where electricity prices are relatively low.

Isn't US energy prices cheap too? AFAIK some states have cheap electricity, don't they have nuclear power plants in the US? Besides the power costs, I think that the reason that there are little to no companies specializing in bitcoin miners is the lack of investors unlike other countries that are the main investors in the project US has problems making it past these potential investors.

[boyptc]

To answer you that.

Why Apple and Tesla have chosen China or any other Asian country for their manufacturing? low cost. US isn't cheap for labor if ever there's a company chose to make and produce in miners the US.

[Kakmakr]

We all know "labour" cost is dirt cheap in China and their level of automation is superior to most nations. They also have a patent on the ASIC technology that they have for those miners that they manufacture. The USA will be able to build them, but the Chinese market will under cut their prices and kill the US market. 

I think Silicon valley are absolutely geared to develop and manufacture ASIC miners, but it would be better to outsource this to Mexico or India for the actual manufacturing. (to cut the labor cost) 
 

[TheNineClub]

It just seems to me they don't want the hassle that comes with it it. I know it's hard to imagine companies would turn down the option to make additional profits, but companies also like to stick to their core business, and, if they are doing good, not to poke around in loosely regulated and shakey projects like bitcoin (not saying it's not reliable, just not reliable as their regular business). They also have boards that hold the leadership of those companies accountable, and I can imagine a lot of board members not being into the whole Bitcoin trend going on.

[slaman29]

I'm pretty sure there are a few American companies that make miners as well; it's just that as far as I know, they're just significantly more expensive.

As for why China is mostly the best place to buy miners: I don't have any sources to back this up, but I'm pretty certain it's the same reason why China is mostly the go-to place for mass manufacturing of pretty much anything— I think it's just simply because labour and materials are simply far inexpensive in China.

Even if American companies make things, they're all manufactures in China anyway. Where else can you get cheap labor, plus cheap materials plus the manufacturing technology? I think other than ownership and management, most things are made in China anyway.

It's not just that too, the laws are very lax there on "doing things right".

[20kevin20]

I think he was asking why the USA has no mining machine manufacturers.

I believe it probably does have to do with labour. It also could be tariffs on certain stuff that is required to manufacture them.

The answer is still at least partially right since the production of miners requires a lot of energy as well. Add labour to that and the costs of materials and you'd have a pretty accurate answer to OP's question. About everything is cheaper there, so the question is.. Why would you buy a more expensive equipment just for its country of production?

[ranochigo]

It'll make more sense for companies to be making miners in the regions for which they're concentrated at. Bitmain entered the game fairly early and could afford to mass manufacture their ASICs at a lower price and a lower shipping cost since it's within China. Bitcoin ASICs or any mining ASICs are a very niche kind of chips and they're only useful for one thing and I presume the demand in US is actually not particularly high or sufficient enough. The profit margin can get razor thin for both the US miners as well as the companies.

Wasn't ButterflyLabs based in the US? And also some of the other mining companies?

[Altcoinsintel]

Bitcoin mining requires a lot of energy. So anyone who wants to set up a mining farm will try to set it up in a place where electricity price is relatively cheap and mining equipment is available at low prices. That's why most the miners prefer places like China, Cyprus where electricity prices are relatively low.

This is the correct answer.

As we can see in the chart below, the electricity cost per Kwh in USA is about 50% higher than China.


https://www.ovoenergy.com/guides/energy-guides/average-electricity-prices-kwh.html

I don't know why we don't have many miners in India, where it is also cheap. But I think China has one additional advantage: They have some of the biggest hydro plants in the world. Energy is probably much cheaper near those hydro plants.

I don't see how this answer is correct. First of all it gives an answer about a different question. It doesn't answer why nobody else except the Chinese are manufacturing ASIC equipment for Bitcoin mining. Secondly, it states that Cyprus has relatively low electricity, while in fact it has one of the highest costs of electricity in the European Union.

https://www.stockwatch.com.cy/en/article/energeia/cyprus-ranks-7th-most-expensive-electricity-market

[androyster]

Bitcoin mining requires a lot of energy. So anyone who wants to set up a mining farm will try to set it up in a place where electricity price is relatively cheap and mining equipment is available at low prices. That's why most the miners prefer places like China, Cyprus where electricity prices are relatively low.

This is the correct answer.

As we can see in the chart below, the electricity cost per Kwh in USA is about 50% higher than China.


https://www.ovoenergy.com/guides/energy-guides/average-electricity-prices-kwh.html

I don't know why we don't have many miners in India, where it is also cheap. But I think China has one additional advantage: They have some of the biggest hydro plants in the world. Energy is probably much cheaper near those hydro plants.

I don't see how this answer is correct. First of all it gives an answer about a different question. It doesn't answer why nobody else except the Chinese are manufacturing ASIC equipment for Bitcoin mining. Secondly, it states that Cyprus has relatively low electricity, while in fact it has one of the highest costs of electricity in the European Union.

https://www.stockwatch.com.cy/en/article/energeia/cyprus-ranks-7th-most-expensive-electricity-market

Agreed.  The question is manufacturing MACHINES not mining.  Also, when companies can't even produce enough of what they have doesn't this leave room for more competition?  Just look at the prices of these new machines that run at lower watts.  There is a real demand for these at the current prices of BTC.  I'm just curious why no American companies are not only making them now but haven't in the past.  They could OEM the factories in China I guess.  But there are plenty of companies that make their own computer boards in this country.  I guess it's about overall market share not being high enough. 

[ChrisPop]

1) According to google, electricity fee in USA is 0.13 USD in comparison with China where it is around 35% lower (0.084 USD).

2) We all know that generally in asian countries the labour is much cheaper than in western countries.

3) From my perspective asians (especially japanese companies) have excelent production competences (maybe I'm not informed enough).

[Renampun]

1) According to google, electricity fee in USA is 0.13 USD in comparison with China where it is around 35% lower (0.084 USD).

2) We all know that generally in asian countries the labour is much cheaper than in western countries.

3) From my perspective asians (especially japanese companies) have excelent production competences (maybe I'm not informed enough).

It is true that the cost of electricity in America is much cheaper than in China...
but I think the problem is not related to electricity costs. The US has very good resources but the bureaucracy there is not. and the cost of electricity is usually the result of a decision by the members of parliament cmiiw.

[MCobian]

I remember about a few years ago discovering several Bitcoin mining machines made in America, but it is more expensive than machines made in China.
So some American companies stopped producing them, as usual, China can make anything cheaper because it is related to material and labor issues,
which are indeed much cheaper than America. So China can produce Bitcoin mining machines that are cheap. So America is indeed less competitive
than China regarding Bitcoin mining machines,  therefore what is widely circulating in the market is mining machines made in China.