Chinese authorities began demolition of cryptocurrency farms

News
Chinese authorities began demolition of cryptocurrency farms
Chinese authorities began demolition of cryptocurrency farms
18 June 2021, 14:46EconomyPhoto: Фото: Bloomberg | Getty Images
This means that the centers of the bitcoin mining industry may appear in countries and regions with low electricity prices.

America and Kazakhstan may seize the bitcoin mining industry from China, CNBC writes. The fact is that the Chinese authorities have launched a large-scale attack on local bitcoin miners. For a start, bitcoin farms will simply be disconnected from the power grid under a purely formal pretext - the Communist Party's concern for the environment, since mining is an extremely energy-intensive operation. But the real reason for this persecution is that China has begun an active fight against the parallel financial infrastructure through which local criminals and corrupt officials conduct their financial transactions and withdraw money abroad.

Today, China accounts for up to 75% of the "mining" of bitcoin. As a rule, ordinary miners enter some kind of pool, at the top of which is a company that provides them with equipment (an average "farm" for mining bitcoin costs $ 30-40 million) and is engaged in the sale of cryptocurrency.

Now these holdings are looking for a new haven, where they are ready to take out equipment from China and establish bitcoin mining there. According to the publication, they consider two territories as priority ones: the American state of Texas and Kazakhstan. Both have inexpensive electricity, and local authorities are ready to patronize bitcoin miners. If this happens, both territories will receive billions of dollars in investment in crypto farms, while China is likely to withdraw from the cryptocurrency market.

Analysts believe that the future spread in the "mining" of cryptocurrencies will even out the global balance of power, reducing the ability of one country to control this business, so that in the next few months we may see the emergence of special cryptoeconomic zones.

“We have governors like Greg Abbott in Texas who are pushing crypto mining. It will become a real industry in the United States, and it will be incredible”, - says one of the experts of the American publication.

Found a typo in the text? Select it and press ctrl + enter