Sichuan joins the Chinese government in cracking down on Bitcoin mining operations in the region, while the city of Miami is calling for nuclear power to be installed in the city.
China's government continues restrictions on gold miners Bitcoin (BTC), citing the environmental damage caused by this activity. Sichuan, the second region in China with the most hash rate of Bitcoin, is the fifth region of the country to join the bans initiated in May, and which prevent bitcoin miners continue its operations.
The region has issued a new ban to force the closure of mining farms in cryptocurrencies, operational on June 25. The measure, according to reported According to a local media outlet, the government will allow authorities to self-inspect mining farms. The provincial government has also ordered power plants, including hydroelectric plants, to cut off power to bitcoin and other cryptocurrency mining farms. So far, authorities have not said whether they will restore power to miners.
Meanwhile, in Miami, United States, the mayor of the city Francis Suárez is calling on all rejected miners in the Asian nation to set up their farms in the coastal city and operate with nuclear energy. Suarez has stated several times that he will turn Miami into a complete Bitcoin mining center of world reference.
It may interest you: Miami interested in Bitcoin mining, Suarez will turn the city into a mining center with clean energy
China's leadership in Bitcoin mining falls
For many years, China has been the country with the greatest dominance over the Bitcoin network, in terms of mining power. This situation led several experts to fear the power that the Asian nation could exert over other nations, including the United States.
In August Chris Larsen, co-founder of Ripple, wrote a article pointing out that China's dominance over more than 65% of Bitcoin mining power at that time could pose a risk to opposing countries and governments, as the Asian power could gain control over the new financial system powered by this digital asset and, theoretically, reverse or block Bitcoin transactions made by its opponents.
However, the situation is changing, as the Chinese government's crackdown on Bitcoin mining has caused it to lose much of its power and dominance over the network. Many of the miners who have been attacked in recent weeks are migrating to friendlier regions, and America offers great benefits for this activity.
Redistribution of Bitcoin mining power
Sichuan is one of the provinces in China with the most affordable energy rates in the world, so in principle, a large part of the Bitcoin network miners were located in this area.
As the blogger pointed out Wu BlockchainMuch of the electricity produced in Sichuan province is abandoned in the summer, so it was being used by Bitcoin miners. Now all this energy will be wasted, he said.
Meanwhile, new energy projects in other regions such as Miami are attracting more miners, motivated by affordable costs and renewable energy sources.
During a interview On CNBC, Miami Mayor Francis Suarez explained that the city is working to reduce electricity costs and provide unlimited power to bitcoin miners. The mayor is extending an invitation to all miners who want to move to Florida and work with clean energy at very low cost.
Thus, Miami It could be the new home for miners who are being displaced by the harsh policies implemented in China, although investment expert Mustafa Yilham He also takes the opportunity to invite miners not to waste the opportunity to geographically decentralize Bitcoin.
In this context, El Salvador is another of the most promising regions in America for the healthy development of cryptocurrency. Its president, Nayik Bukele became Bitcoin into the country's legal tender and is promoting a crypto mining project using energy from volcanoes. On the other hand, Paraguay y Panama They are also pushing for new Bitcoin-friendly legislation, so they could also become great destinations for cryptocurrency miners.
In addition to America, Russia y Kazajstán are also among the plausible options for network miners.
Clean energy for Bitcoin sustainability
On the other hand, the availability of clean energy is one of the main goals pursued by the network's miners. Miners have long been pushing for carbon-free energy solutions and mining equipment manufacturers are building more energy-efficient devices to contribute to the sustainability of Bitcoin, without affecting the environment.
In fact, a study published by the University of Cambridge notes that Carbon emissions from bitcoin mining do not exceed 0,17% of total emissions in the world Currently, however, more and more miners are joining in the push for clean energy sources to become more efficient and reduce these emissions to zero in the near future.
Benefits for miners in the long term
Despite the fact that China's measures against mining are causing negative effects on the network, such as the fall in the price of Bitcoin, several experts believe that these measures will have a beneficial effect in the medium and long term. Geographic decentralization, the promotion of clean energy and the reduction of energy costs will bring great benefits to Bitcoin miners and users in the future.
“China’s crackdown on mining is a tragedy for China, a nuisance for Bitcoin, and a windfall for North American Bitcoin miners”, were the words of Michael saylor, CEO of MicroStrategy and the largest institutional investor in Bitcoin, a few days ago.
Continue reading: El Salvador will launch a plan to mine Bitcoin with 100% clean and renewable geothermal energy
