Bitcoin mining in China paved the way for the United States to be the new hotspot for the industry as miners look for cheaper and cleaner energy sources.
In the past six months, the United States jumped to being the second placer from fifth place, which accounts for almost 17% of the world’s Bitcoin miners.
Still, Beijing is on the top as of April despite the crackdowns, with a 46% share. However, an analyst said the US market share is likely higher due to Chinese regulations last May. Due to this, US-based crypto mining firms saw a huge rise. The CEO of a Bitcoin mining provider said that their retail hardware and hosting sales had grown almost 300% since mid-June.
Moreover, Blockcap and Core Scientific founder stated that he saw a rapid increase in mining operations that aim to relocate to North America, mostly in the US. This means that North America would account for about 40% of the global hashrate by the end of 2022, which is good news for Bitcoin’s carbon footprint in the long run, he added.
An analyst said that energy consumption does not correspond to carbon emissions. He also stated that it is easy to identify the Bitcoin network’s consumed amount of energy. However, a carbon footprint is much harder to measure. Yet, the cryptocurrency market is pushing North America’s energy resources to be greener.
Based on analysts’ data in 2020, several most common renewable energy sources are cheaper than conventional energy sources, such as coal and gas.
Another expert stated that most new miners in North America would be powered by renewable sources or gas offset by renewable energy credits.
Furthermore, it was estimated that the crypto mining platform in the United States is already over 50% powered by renewables.
Meanwhile, the price of BTC climbed back above $30,000 on Wednesday. This suggests firm support even though the mood in financial markets is still fragile. Bitcoin hopped 3.82% or 1133.5 points to $30,778.7 after it dropped 3.00% at $29,952.20 last Tuesday. This is a week-to-date plunge of over 4.60% and a month-to-date drop of about 15.00%.
An analyst said the drop below the $30,000 key support level is critical. A breach may result in a huge technical selloff. He added that crypto investors are aware that the digital currency’s price is extremely volatile.
Last June 23 was Bitcoin’s first slip under $30,000 as it traded at an all-time high of over $60,000 last April.
Several analysts blamed China’s bitcoin mining and trading activity crackdown on the fall of the digital asset.
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