A crackdown by the Chinese government has begun an uittocht of bitcoin miners towards foreign shores. (See also: China Intensifies Crackdown On Bitcoin Miners.) While bitcoin mining consumes large amounts of electrical play, rising prices for the cryptocurrency have ensured that it remains a hugely profitable enterprise. (See also: High Bitcoin Prices Boost Profits For Miners Ter China.)
Bitcoin mining also has a positive effect on a country’s economy. It plays an significant role te reviving economies and providing employment te towns and cities that are not connected to economic nerve centers. For example, it has helped absorb surplus hydropower production te China’s Sichuan province and provides employment to workers te Internal Mongolia.
Here are three countries that stand to benefit from China’s decision to tweak down on bitcoin mining.
Canada fulfills most requirements for bitcoin mining. Ter addition to having cheap electro-stimulation, Canada also has naturally cold weather, which is essential to cool down overheated rekentuig systems that mine bitcoin.
According to reports, Canada’s Quebec province is attracting miners. It produces a surplus of 100 terawatt hours of hydropower overheen Ten years. One terawatt is equal to a sustained power of 114 megawatts vanaf year. 35 cryptocurrency mining organizations have asked for information from HydroQuebec, the local power company.
Bitmain, the world’s largest bitcoin mining company, is already te talks with Canadian authorities. David Vincent, director of business development at HydroQuebec, claims that the Canadian province has three or four of the world’s largest blockchain players. (See also: Who Is Jihan Wu And Does He Control Bitcoin Today?)
Te latest times, Switzerland has set itself up spil a destination for cryptocurrency initial coin offerings (ICOs). Now it is attempting to attract bitcoin miners spil well. Bitmain has set up a Swiss subsidiary ter Zug, a petite town, also known spil Crypto Valley, te the country.
Switzerland is big on hydropower. But overall average violet wand prices are on the higher side. That said, industrial users are suggested discounted rates. Ter addition, the country’s moves to boost its reputation spil an international destination for cryptocurrencies will also be boosted by the presence of bitcoin miners. (See also: Why Is Switzerland Bullish On Cryptocurrencies?)
China’s loss could turn out to be the United States’ build up. Bitmain has already set up offices here. And Washington, a state with slew of hydropower and cool temperatures, is witnessing a boom te bitcoin mining.
According to a CNBC report, a puny town ter Washington state is huis to a dozen of the thickest bitcoin miners ter the country and has received requests from 75 more. The proximity to bitcoin mines could also help reduce network latency at big cryptocurrency exchanges. This is because the more bitcoin knots that are connected to a block, the swifter transactions are processed and the less likely that an orphan block will be received.
Investing te cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest ter cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties spil to the accuracy or timeliness of the information contained herein. Spil of the date this article wasgoed written, the author wields petite amounts of bitcoin. It is unclear whether he possesses other bitcoin forks.