George Levy – What if Bitcoin Miners Stopped Mining?
- Electricity in Europe is too expensive
- Russia and Abkhazia may become mining centers in the CIS
Bitcoin miners see Texas as a new mining hub
Bitcoin miners are looking for ways to save on electricity
Texas could be the new hub for bitcoin mining
Russia, Ukraine, Abkhazia and Kazakhstan offer favorable conditions for mining
American bitcoin farms are ready to offer minimum electricity rates in Texas. It is likely that this state will become the new center of cryptomining in the United States..
Electricity in Europe is too expensive
The real discussion took place on Twitter after the announcement of the mining company HODL Ranch that they were ready to provide electricity to miners at a price of 1 cent per kWh. This is five times cheaper than the price of electricity in Europe.
Specifically, @ btcking555 wrote the following:
“Our source in Germany informs us that @NintageDataAG is having difficulty meeting its 1,000 MW target by the end of the year. Customers are either looking to lower prices or are considering many other options in Texas. “.
That is, high electricity tariffs in Europe motivate miners to look for more attractive conditions for industrial mining of cryptocurrency. An alternative could be a mining farm in Texas.
Earlier BeInCrypto reported that Layer1 data centers made 700% of the profit by selling energy to the network.
On hot days, the mining factories of the Layer1 company stop their work for about 30 minutes. The energy saved during this period is sold back to the grid by the company, making millions in profits. When electricity prices in Texas surpassed $ 200 per megawatt hour, Layer1 earned over 700% profit, according to Founder and CEO Alexander Ligle..
At night, the company, on the contrary, increases the activity of bitcoin mining, since at this time the cost of electricity drops to zero or even lower due to an excess of wind energy. Thus, choosing the time to mine cryptocurrency and sell electricity, Layer1 increased its own profit by 7 times.
Russia and Abkhazia may become mining centers in the CIS
Some CIS countries such as Russia, Abkhazia and Ukraine may become an alternative platform for miners..
Researchers at Xangle Research analyzed the amount of bitcoin (BTC) hashrate generated in Russia, as well as the activity of Russians on crypto exchanges, and came to the conclusion that Russia could become a key player in the digital asset market. Analysts came to this conclusion,.
As of August 27, 2020, most of the computing power aimed at mining bitcoin is concentrated in China (71.7%). Russia, with a result of 6.08%, is in second place. The United States closes the top three – 5.29% of the BTC hash rate is concentrated in the country.
Ukraine is also increasing its presence in the crypto mining market. Most recently, Ukraine adopted a law “On digital means of payment”, which actually legalized the use of cryptocurrency in the country, and also presented the main provisions and rules for the operation of cryptocurrency exchanges. The next step on the road to digital transformation will be the construction of a powerful computing center with 1 GW, which will be used, among other things, for the extraction of cryptocurrencies. Vice Prime Minister, Minister of Digital Transformation Mikhail Fedorov stated this at a briefing..
The Minister of Digital Transformation also noted that the national energy company Energoatom will become the supplier of electricity for the operation of the data center, and the investor will be Yom Capital Ltd.
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