Bitcoin investors continue to bet on the cryptocurrency's optimistic future by investing in mining equipment, even though Bitcoin's current value remains stable around $9.000, and shows no signs of breaking the $10.000 barrier, at least not yet.
The power of mining is. de Bitcoin is mainly concentrated in China and the United States of America. According to a report recent made by Fidelity, a company specialized in asset management and pension funds and for BitOoda, a research company cryptocurrencies, , reveals that the Asian giant owns around 50% of the total hash rate Bitcoin, while the United States accounts for around 14% of all the network's computing power. However, investment in mining equipment has recently been growing, mainly from small businesses located in the United States.
In a press release, announced that Arctos Capital, a cryptocurrency lending company, funded Blockware Mining for a total of 1 million dollars for the purchase and leasing of mining equipment for Bitcoin. At that time, the Manager of Arctos Capital, Trevor Smyth, announced that this was an important step to promote the growth of the mining industry within the United States.
“We are excited to increase our ability to provide funding to leading Bitcoin miners in North America throughout 2020 and beyond.”
Through this type of financing, small businesses can achieve greater expansion of their mining capacity and power on the Bitcoin network in an efficient way.
It may interest you: Bitcoin's resilience Can the cryptocurrency withstand a new decline in the global economy?
Growth in investments in mining equipment
Meanwhile, other US companies have also been expanding their acquisitions of ASIC mining equipment to power the Bitcoin network. For example, Core Scientific, which is based in the United States, acquired more than 17 thousand mining equipment ASIC Antminer S19 within Bitmain, the world's largest Chinese ASIC equipment manufacturer.
This investment, classified as one of the largest made by a single company, aims to provide Core Scientific with its own equipment to boost mining activity, while increasing the potential of its clients through its cloud mining services. In this regard, Core Scientific's Head of Customer Services, Russell Cann, noted that due to recent regulations surrounding cryptocurrencies in the United States, the stability of the electrical system and current weather conditions favor the growing interest in Bitcoin mining.
For its part, Irene Gao, Antminer's Sales Director for North, Central and South America (NCSA), noted that the recent investment made by Core Scientific will allow the company to advance its objectives while improving the stability and security of the network.
“The Antminer S19 will serve to enhance the stability and security of the cryptocurrency network and advance Core Scientific’s focus on growing its business in the digital mining industry.”
While it is undeniable that the largest concentration of Bitcoin mining power is in China, where the largest manufacturers of state-of-the-art mining equipment are also located, there is also a growing interest in mining activity in North America and other places around the world.
Confidence in the mining sector is also growing
Although the third halving The Bitcoin event took place a couple of months ago and in the days leading up to the event there was a significant decrease in the computing power of the network, due to the halving of the reward in bitcoins, the truth is that the hash rate remained relatively stable, to the point that The current network difficulty has a new all-time highThis fact indicates not only that Bitcoin has a higher level of security and stability, but also demonstrates an increase in the number of miners who have joined the network; something that, therefore, is understood as a growth in the level of trust regarding Bitcoin.
This positive and bullish trend in Bitcoin mining shows that investors and mining companies are not intimidated by the current situation of the cryptocurrency, which suffered a drop in value and currently remains at a point of minimal volatility, with little change from its price close to $9.000 per unit.
Future expansion plans
On the other hand, the US cryptocurrency market Blockfills He also noted that over the next 12 months he expects to be able to fund a total of $250 million for investment in Bitcoin mining equipment in North America, and that he hopes to secure good deals to establish new mining farm facilities within Canada and the United States.
The growing interest of mining companies in establishing their projects outside of Chinese territory, which still remains the point of greatest concentration of the Bitcoin hash rate, is perhaps due to the regulations and impositions that the government has been implementing around this activity. Recently, in the province of Sichuan, the Chinese government cancelled all accounts and banking products of people who were engaged in cryptocurrency mining activities, claiming that they had to prove that the funds were obtained legally in order to recover them. Likewise, the Asian giant is developing several attempts focused on centralized control of mining activity, while the creation of its own CBDC currency, the digital yuan, is in development. All these actions taken by the Asian country are generating distrust in miners and companies dedicated to this activity, who are beginning to look towards new horizons.
Continue reading: Bitcoin a solution for debanking and financial inclusion
