Thursday, July 7, 2022
HomeBusinessThe U.S. is taking steps to crack bitcoin in China

The U.S. is taking steps to crack bitcoin in China

An employee of the Winston U.S. Bitcoin Mining Center at Rockdale, Octobi, Texas, installs a new line of Bitcoin miners

On October 9, 2021, a worker installs a new line of bitcoin miners at the Winston U.S. Bitcoin Mining Factory in Rockdale, Texas.

The long sheds of Texas, North America’s largest bitcoin mine, look endless in the sun, full of machinery that has helped the United States become the new global hub for digital money.

The operation in the quiet town of Rockdale was already part of a busy U.S. business – now the industry is being pushed west by the intensified cryptocurrency crackdown in Beijing.

Experts say U.S. rule of law and cheap electricity are a draw for bitcoin miners, competing to unlock energy-sinking computer currency units.

Chad Everett Harris, CEO of Winston, a miner who runs the Rockdale website owned by Rebel Blockchain, a U.S. company, said: “Many competitors are coming to Texas because we have seen similar things when we’ve been here.

In September 2019, China was the undisputed center of the crypto mining industry with about two-thirds of its global capacity, but last month Beijing declared all transactions related to cryptocurrency illegal as it seeks to start its own.

Statistics released by the University of Cambridge on Wednesday showed that U.S. activity had more than doubled in the four months to the end of August, with the world’s largest economy gaining 35.4 percent of its market share.

An employee fills out a form on October 10, 2021, at the Winston U.S. Bitcoin Mine in Rockdale, Texas.

An employee fills out a form at the Winston U.S. Bitcoin Mining Center in Rockdale, Texas on October 10, 2021.

Samir Tabor, chief strategist at Bit Digital, a miner, said the company began withdrawing from China in 2020 and accelerated the process as repression intensified. They operate in the United States and Canada.

“China’s ban on bitcoin mining is basically a gift to the United States,” he said. “Thanks to their ban, the entire sector migrated to North America with innovations, labor and machinery.”

Some of the key factors that appeal to the United States are simply a democratic government, a judicial system, and the power to protect property rights.

David Yarmack, a crypto expert at New York University, said: “If you are going to make a long-term investment and amass wealth in a country, you need to have some confidence that it will not be taken away by the government.

Winston CEO Chad Harris poses for a portrait of a room with bitcoin miners during a visit to Winston Bitcoin in the United States

Winston CEO Chad Harris posed for a photo on October 10, 2021, during a visit to the Winston U.S. Bitcoin Mining Center in Rockdale, Texas.

‘Poetic’ back to America

He said the move to the U.S. would be temporary, saying that places like the Nordic countries have cheap and abundant renewable energy as well as cold weather to cool high-speed mining machinery.

According to the University of Cambridge, continuous environmental criticism of the industry’s massive annual electricity consumption has led to a steady increase in U.S. – based mining operations, more than the amount used by the Philippines in a year.

The industry’s reliance on carbon emissions as a contributing factor to climate change has led to a continued downturn.

“To think that we’re causing damage or pollution all of this here … most of our power comes out of the Ercot network and that profile is extremely environmentally friendly,” Harris said of the Texas power grid. Operator.

An empty street in Rockdale, Texas, on October 9, 2021

An empty street in Rockdale, Texas, on October 9, 2021.

According to Ircot data for 2020, about 46 percent of its power comes from natural gas, while wind and solar power account for 25 percent and coal for 18 percent.

Victoria Sotova, a professor of business at Georgetown University, said companies may have more flexible terms because the market is regulated by the fact that mines are the main price to pay for electricity and a place like Texas is appropriate.

“In principle, they can buy electricity when it is cheap and not when it is expensive,” she said.

While there are clear reasons for the migration of the crypto world, some also see a bit of poetry in the mining operations coming to America from China.

Taber, a miner at Bit Digital, said his company had a website in Buffalo, New York, which was a major manufacturing hub in the country, but lost jobs and prosperity as manufacturing moved to locations such as China.

“A little bit of poetry is happening,” he noted. “I understood how this could be done in its entirety.”


China’s cryptocurrencies look overseas as regulators tighten


© 2021 AFP

Excerpt: ‘Gift of the Unknown’: US Steps to Break Bitcoin in China (October 17, 2021) October 17, 2021 https://techxplore.com/news/2021-10-unintentional-gift-china-bitcoin-breach.html Retrieved.

This document is subject to copyright. No part of it may be reproduced without written permission, except in fairness for personal study or research. Content is provided for informational purposes only.

Source

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments