Digital Gold Rush: Bitcoin Mining Boom Coming to American West
Sentiment in the crypto industry is generally bearish at the moment as bitcoin takes another turn south and threatens to drop into the $6k region again. BTC mining outfits are unperturbed, however, and are heading to America’s west in droves as a new digital gold rush begins.
Bitcoin Mining Boom
From a price perspective things are not looking too hot for BTC. The correction currently stands at around 48% and the six month down trend is still very much intact. It is unlikely that there will be any ‘Santa rally’ and the selloff will probably continue for the rest of the year.
Some aspects of the industry are still showing solid growth though and bitcoin mining is one of them. According to a recent Nasdaq report, a new digital gold rush is occurring in North America.
Business is booming at BitOoda, a financial services and brokerage firm that advises bitcoin mining companies and investors. Head of business development, Ryan Porter, told the outlet that there is lots of interest, especially from Chinese firms and investors.
This is hardly surprising considering the constant threat of regime crackdowns in the communist country. China wants its own crypto currency and no others, which has forced companies to seek friendlier climes.
Canada and North America are becoming the new frontier for bitcoin mining operations which are seeking relative freedom from government interference and plentiful supplies of ready-to-use, cheap power.
Texas is one state where conditions are favorable for bitcoin mining operations. The report added that local economic development officials are working with companies such as Bitmain to take over abandoned industrial sites.
Founder and president of Montreal-based Academie Bitcoin, Jonathan Hamel, added;
I believe that we’re moving towards a normalization/commoditization of the industry. That’s a good thing for Bitcoin: more locations, more decentralization.
California is another state attracting investment, as recently reported by Bitcoinist, the Cerro Gordo town was sold last year for $1.4 million. The investors plan to turn the ghost town into BTC mining and blockchain hub by using innovative water conservation technology and sourcing energy from solar and other renewables.
Cheap energy is going to become a key incentive for BTC mining operations, especially after the halving which will drop block rewards by 50% and increase overall competitiveness. According to CoinShares research earlier this year, bitcoin mining relies heavily on renewables in comparison to other industrial sectors.
We calculate a conservative estimate of the renewables penetration in the energy mix powering the bitcoin mining network at 74.1 percent, making bitcoin mining more renewables-driven than almost every other large-scale industry in the world.
Nasdaq goes on to list several other US and Canadian locations that are attracting investment. China’s loss as the industry exodus accelerates will be America’s gain, as the digital gold rush gathers pace. As pointed out above, this is also good news for the decentralization of China’s current dominance in the mining sector.
Will China’s crackdown cause mining operations to move to America? Add your comments below.
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