TL;DR Breakdown
- Crypto miners leaving China because of crypto crackdown going to the US.
- US attractive because of cheap electricity, Rulr of Law.
- Analysts says Nordic countries better for crypto miners because of abundant source of renewable energy.
Analysts and crypto gurus are beginning to see the US as the top beneficiary of the crypto crackdown China has been enforcing in the past week. The US is already seeing an influx of miners drawn to cheap energy and the added benefit of a democratic court system.
Rockdale has become the new destination of every Tom, Dick, and Harry into crypto mining as the largest Bitcoin mine in America is located in the town. The town has established itself as a bustling mining industry in America, which has now seen renewed growth due to the crypto crackdown in China, and it is slowly making America the new hub for crypto mining.
Reportedly, the town offers cheap electricity and a clear rule of law which experts say is why the US town is an attractive place for Bitcoin miners.
“There’s a lot of competitors coming into Texas because they see the same thing (as) when we came here,” Chad Everett Harris, the CEO of miner Whinstone, the company that operates the Rockdale site, said.
The town in Texas is another key location miners are moving to in their minions because of the deregulated market-making companies to operate with more flexibility, buying electricity when it is cheaper and putting off buying it when it is more expensive.
Analyst tip Nordic countries a better destination for firms in wake of crypto crackdown in China
David Yermack, an expert in crypto at New York University, said that Nordic countries are a much more attractive prospect with cheap and abundant sources of renewable energy and more favorable weather for mining operations.
He, however, explained that miners are moving to the US because of its attractive prospect and legal system that protects the property rights of people in the country. “If you’re going to make long-term investments and accumulate wealth in a country, you want to have some confidence that it’s not going to be taken away by the government,” he said.
Before the Chinese crackdown, China was the nerve center of a majority of crypto-mining operations, with the country holding two-thirds of the global bitcoin mining capacity in 2019. However, the country has turned its back on crypto for several reasons, cracking down on crypto firms and placing a ban on cryptocurrency transactions.
