China Kicks Out More than 50% of the World’s Miners – the Exodus Could Bring Them to Texas

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China has been in the limelight of the negative crypto news for a while now. The Asian financial juggernaut has been cracking down on cryptocurrencies in recent months, and the newly proposed green laws will see most of the miners kicked out of the country.

Earlier in May this year, officials from Beijing announced that the country is moving to ban Bitcoin mining and trading. It is one of the major reasons for the recent crypto price drops. As many of you know, more than half of the world’s miners are in China, and the exodus might seek them to move to greener pastures.

More specifically, Texas, USA.

Texas is a Miner’s Heaven

Why would Texas be a great destination for China’s kicked miners? Well, first and foremost, it has an abundance of wind and solar power. The state is also friendly of cryptos and the unregulated market is a further boost that will delight China’s miners.

Compared to other US states, Texas’ energy prices are pretty low. The state has done well to reduce its dependency on traditional power sources. It is constantly increasing its share of renewables, with over 20% of its total power since 2019 coming from wind. When it comes to the power grid, customers can choose from a slew of energy providers. The market has been deregulated for quite some time, which make it ideal for miners.

On top of it all, Texas’ political leaders are open to cryptocurrencies. In combination with the renewable energy sources and deregulated power market, it’s every miner’s dream.

Experts believe that there will be a massive, dramatic shift in the next few months. Governors such as Texas’ Greg Abbott are pushing for a change and openly supporting mining, and that might turn into a great US industry soon. This will open up the door for great new industries to blossom such as crypto gambling, which is already widely popular in the USA.

China’s Mining Influence Will Fade

So far, estimates about the global mining power have put China in the 65%-75% bracket. That means that over 70% of the world’s crypto miners reside in China. The whole mining process has been causing a lot of trouble in terms of carbon emissions, which is why the country is pushing miners out and seeking for a green solution.

That might never bear fruit in China, but Texas might be the next big global crypto mining destination. Miners at scale often compete in low-margin industries where the cost is energy, not cash. Texas has plenty of it from different sources, giving miners the green solution they’ve been seeking.

We may soon see a global shift in mining and possibly a shift to green mining solutions. That’s something enterpreneurs such as Elon Musk have been promoting, and the dream of every miner.

One thing is clear – something needs to change, so maybe the Chinese miners exodus and them setting up shop in Texas could change the industry for the better forever.

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June 16, 2021: • No Comments

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