China has been the leading cryptocurrency mining hub in the world for a few years now. However, the tide seems to have changed in favor of the US. Canada, a neighbor to the north, and Kazakhstan are also receiving significant attention from cryptocurrency miners.
The exodus to the US and other neighboring countries is not a cause for concern because the miners are still earning their bread. However, it is reasonable to ask why miners are skipping many other countries for the US. By April 2021, the US accounted for 17% of the cryptocurrency mining market in the world. The number had grown by 151% in just seven months from September 2020.
The northern states in the US are poised to host these migrating miners. They are arriving in droves as the Chinese government cracks down on miners through an official policy. Why have they chosen the US as their new home? Here are a few insights from industry experts.
Crackdown in China
China has gotten jittery about cryptocurrency. Authorities in the country are worried that they do not have a share and cannot control the cryptocurrency market. Their best alternative is to crack down on its usage.
The first step in the crackdown is to focus on the miners. These are the middlemen and professionals who help users to complete transactions. In their absence, the users would be required to learn the process and put in place the necessary infrastructure. Such is a daunting task for an ordinary cryptocurrency user.
The search for a haven has led cryptocurrency to the US. The USA has embraced cryptocurrency usage. The government is supporting the establishment of enabling infrastructure to run the economy using cryptocurrency. Such an environment is safe and profitable for cryptocurrency usage.
Friendly regulator and business environment
Cryptocurrency is a new financial transactional model. It has been in use in the USA for a while. It began with corporate usage at the middle level. Today, multinationals are embracing cryptocurrency as the financial transaction platform of the future.
The government in the USA is also encouraging the development of such technology to simplify business. Miners looking for a new market do not have to worry about regulators. The government is welcoming them with open arms and even offering incentives to keep them around longer.
Cryptocurrency mining requires specific equipment. The equipment must run fast to complete the transaction in record time. Transactional speed is especially a non-negotiable factor when dealing with cryptocurrency. The USA provides a solution.
The USA has some of the fastest computers around the world. These computers are available to the common man and at an affordable price. The other gadgets to monitor and power the transactions are also available. It is, therefore a destination of choice for cryptocurrency miners.
While gadget speed is crucial during transactions, internet connectivity is a complementary factor. The USA boasts of one of the highest internet connectivity speeds. For this reason, a miner can stay anywhere in the USA and still access a high internet speed connection, enough to complete a cryptocurrency mining transaction.
The availability of advanced technology in the USA knocks out all other countries in the mind of cryptocurrency miners. They can run their businesses easily without incurring huge expenses or being out-competed by people from other countries.
Increase cryptocurrency usage
Cryptocurrency usage is growing everywhere. However, the USA remains a central financial hub. The miners can use their money freely. They have access to the best mining systems and can transact with cryptocurrency from ordinary shops. The miners will, therefore, spend the money they have earned easily while in the USA.
Renewable energy credit
States in the US are offering renewable energy credits to different industries. It results in reduced energy expenditure by the beneficiaries. Some of the beneficiaries are cryptocurrency miners.
Cryptocurrency mining is an energy-intensive process. By providing credit, miners pay less to run their highly advanced mining gadgets. This is an excellent bargain for the miners.
The exodus to the US by cryptocurrency miners has just begun. Whether the miners are escaping government persecution or looking to secure their profits, the USA remains the preferred destination. The miners are receiving encouragement from the increased uptake of cryptocurrency technology in the USA.
Timothy Miller is a digital marketing specialist. He is also a homework helper with MyCustomEssay.com. He also helps students with entrepreneurship while still in college.
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