[2021-10-14] U.S. Claims Top Spot For Bitcoin Mining As Miners Flee China ban

[bbc.reporter]

I have been seeing this development being larped by maximalists in social media. Does this not open bitcoin mining from a risk moving to another risk? What would the effect be if the American government decides to begin cracking down on miners similar to what occured in China? This should be concerning.



The United States is now the top location for bitcoin miners in the world, according to new data from the University of Cambridge, breaking China’s stranglehold on the industry after Beijing’s cryptocurrency crackdown sent miners scrambling to new locales.

As of July, more than a third (35.4%) of bitcoin’s hashrate—a measure of the mining network’s computing power—was located in the U.S., according to the Cambridge Centre for Alternative Finance.  
The figure is the highest proportion recorded for the U.S., up from around 21.8% as of May and around 4.2% a year ago.

Kazakhstan (18.1%), Russia (11.2%) and Canada (9.6%) were other leading destinations for bitcoin miners, according to the hashrate data.

Source https://www.forbes.com/sites/roberthart/2021/10/13/us-claims-top-spot-for-bitcoin-mining-as-miners-flee-china-crackdown---here-are-the-worlds-biggest-mining-hubs/

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[NeuroticFish]

just as a note, the topic is also discussed here: After a few months of China crackdown on mining. Check it out!

[20kevin20]

I have been seeing this development being larped by maximalists in social media. Does this not open bitcoin mining from a risk moving to another risk? What would the effect be if the American government decides to begin cracking down on miners similar to what occured in China? This should be concerning.

They'd just move to another country and that's it. I don't see such a huge risk honestly, and at the same time I highly doubt that the US would ban mining. Sustaining BTC mining and being the top country in the world at it (they love being the top anyway) is better than cracking down on it and letting another country take the lead.

[buwaytress]

^ Not just US loving being numero uno, but to "steal" business from China would be like a double slam dunk or whatever term they'd come up with heh.

Weren't Texans suffering from a cold snap thing last winter though because of low power supply? There's also a huge power squeeze ongoing now in Europe and globally. China's thirsty, Europe's cold, so I sense a sudden power play coming into the picture to jar the situation as well.

[Ozero]

You shouldn't worry about the country with the highest bitcoin hashrate. Now the largest amount is mined in the United States, according to the latest statistics, not a single percent of bitcoins are mined in China, although there are probably still small miners who do their work underground.
As they say, a holy place is never empty. In whatever country Bitcoin mining is banned, mining will simply increase in other countries. This also applies to the United States. In this issue, Kazakhstan, Canada, or any island state in general, where there will be liberal legislation on this issue, will be in the lead. Bitcoin mining will continue anyway.

[bbc.reporter]

According to Wublockchain’s Twitter account, because of Kazakhstan's uncertain regulatory policies and uncertain stability of electricity supply, miners have begun migrating to America. This causes more centralization on bitcoin mining again and we are back to possible government threats similar to China. I am shaking my head why some maximalists are celebrating.



Some big miners told us that due to Kazakhstan's uncertain policy and the lack of electricity in winter, they are migrating to the United States, and the United States seems to be the only suitable Bitcoin mining destination now.

Source https://mobile.twitter.com/wublockchain/status/1450088241940496385?s=12

[jossiel]

According to Wublockchain’s Twitter account, because of Kazakhstan's uncertain regulatory policies and uncertain stability of electricity supply, miners have begun migrating to America. This causes more centralization on bitcoin mining again and we are back to possible government threats similar to China. I am shaking my head why some maximalists are celebrating.

I'm confused why they're chosing America to continue what they've started. Aren't there other countries whereas there's no threat of cracking down miners?

Those countries that even has low cost of electricity.

[SFR10]

miners have begun migrating to America.

I feel sorry for those miners that had to relocate their operations for the second time in a year or two!
^{- I wouldn't be surprised to see more migrations in the future [either because of the constant changes in rules and regulations or other indirect stuff].}

This causes more centralization on bitcoin mining again and we are back to possible government threats similar to China.

Exactly! I stressed that point in another thread before... It doesn't matter if it's going to be the US or another country!

Some big miners told us that due to Kazakhstan's uncertain policy and the lack of electricity in winter, they are migrating to the United States, and the United States seems to be the only suitable Bitcoin mining destination now.

I wonder what could the US possibly offer, that other countries can't at the moment?

[bbc.reporter]

@SFR10. I am not certain why they chose America, however, there were articles written that the environment in there is presently welcoming for bitcoin mining in some areas of the country. But we witnessed from China that this can change instantly.

[DaveF]

I wonder what could the US possibly offer, that other countries can't at the moment?

Lots of cheap (empty) hosting space that has lots of power and cooling available since it was used for hosting industries before hand.
For 'real' data centers, the ones that Google / Microsoft / IBM / etc. use it's usually cheaper for the mega corporations to build a new center with more modern everything then upgrade the old ones.
For 2nd tier stuff, like mining it's nice to be able to move into a facility that already has power / cooling / etc.

Yes, it's going to cost more to run since the generators if needed are older and less efficient and the chillers are going to be older and less efficient.

But, since they just got kicked out of China, these facilities are already there and available. Don't have to spend time building stuff, getting permits, waiting for whatever.
You know that it has "X" amount of power and "Y" amount of cooling that works. Just bring in the miners and plug them in and go.

-Dave

[Kakmakr]

So... What will happen if the US bans Bitcoin mining too ..and the Bitcoin miners move to Pakistan and then Pakistan bans Bitcoin mining and the miners move to the UK.... I think you catch my drift....right?

Bitcoin mining is not centralized in one country... and if something happen, then miners just move to the next Bitcoin friendly country.    (There will always be countries that will be showing the middle finger to the trending actions of other countries... just take Venezuela as an example) 

[bbc.reporter]

@Kakmakr. The miners will then be under the tolerance of the government of the country where they move only if they want to tolerate them. You also get the drift?

I was not convinced in Asic resistance before and considered this useless. I supported the mining algorithm change for Aeon to K12 to make it easier for the development of Asics. This appears to be a mistake, however. Research for Asic resistance is very much needed to avoid the weaknesses of centralization and other threats on mining. We are witnessing it in bitcoin.