Chinese exodus of cryptocurrency mining machines leads to global redistribution
A global redistribution of cryptocurrency mining machines is underway following China’s mining ban in May.
The majority of the machines, a total of just over 2 million, were sent to Russia, Kazakhstan, the United States and Canada. Despite the ban, cryptocurrencies had a record year despite recent weakness.
“China’s ban on cryptocurrency mining in May sparked an exodus of miners and a global race to move millions of clunky, power-hungry machines they use to solve complex puzzles and earn bitcoin.” , The Financial Times reported. “Fourteen of the world’s largest crypto mining companies moved more than 2 million machines out of China in the months following the ban, according to data collected by the Financial Times. The lion’s share of the machines was hastily moved to the United States, Canada, Kazakhstan, and Russia.
The Financial Times noted that one of the beneficiaries of this exodus was the US cryptocurrency mining company Bit Digital. The company hired an international logistics company to bring the machines to the United States, another 1,000 of which are still awaiting release from New York Harbor.
“We started our fleet migration in March 2020, which, looking back, was a great initiative. When the ban was announced, we had 20,000 minors in China, ”said Sam Tabar, chief strategy officer for Bit Digital.
Given this massive new supply of machines, crypto mining companies solved one problem but got a new one in return, providing ample space for the new machines.
“The focus of the market has shifted from a lack of equipment to a lack of space for its placement,” said Roman Zabuga, spokesperson for BitRiver.
Will the EU follow China?
China may not be the only nation to start phasing out crypto mining companies. Swedish authorities at the Swedish Financial Supervisory Authority and Environmental Protection Agency have called for more efficient ways to mine crypto to meet Paris Agreement goals for change climate.
“This corresponds to the domestic electricity of 200,000 households,” note Erik Thedéen of the Financial Supervisory Authority and Björn Risinger of the EPA, in a report. Swedish newspaper. “This is a development that we must stop.”
“If we were to allow a large mining of crypto assets in Sweden, we run the risk that our renewable energy will not be sufficient for the critical climate changes we need to make, like the production of fossil-free steel, the production of batteries. on a large scale, and the electrification of our transport sector, ”they added.
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