With China suddenly exiting the bitcoin mining space, it looks like many other companies in regions such as Canada are beginning to take over.
China Is Saying “Good Bye” to BTC Mining
China has been adamant about ending its bitcoin mining presence over the past few weeks. Beijing recently issued a notice to all mining companies that to become a greener nation, all crypto extraction projects would no longer be allowed within the country’s borders. Thus, if they wished to continue, they would need to find other countries willing to host them.
This really set off a string of negative events, a big one being that bitcoin’s price continues to suffer at press time. The world’s number one digital currency ultimately reached a new all-time high of approximately $64,000 per unit last April, though now it appears that BTC is selling for less than half that figure – and traders arguably have China to thank.
For the longest time, China completely dominated the bitcoin mining space, accounting for roughly 65 to 75 percent of the world’s projects. However, now it looks like companies such as Bit Farms in Canada are making their way deeper into the ring. With China out of the picture, there is a lot of energy to suck up and utilize, and many of these companies are finding ways to stay in practice while being more environmentally friendly.
Bit Farms, for example, utilizes only hydroelectricity to extract new coins from the blockchain. This has allowed it to become more acceptable in the eyes of those who consistently argue that bitcoin and crypto mining are damaging to Earth’s atmosphere. In addition, with so many companies in China either experiencing delays or knocking themselves off the map altogether, there is considerably less competition. There are fewer users online, meaning Bit Farms has managed to double its efforts over the past year alone.
Thus far, in July, the company managed to mine almost as much bitcoin as it did in the months of May and June combined. By the end of July, Bit Farms expects to have extracted approximately 400 new bitcoin units, totaling more than $12 million should BTC’s price remain intact. The company claimed in a statement that it has mined more bitcoin than any of its competitors using clean energy.
A Big Opportunity for Other Companies
Emiliano Grodzi – the founder and chief executive officer of the company – explained:
With the recent ban on bitcoin mining in China, Bit Farms has nearly doubled its market share and is currently producing approximately 13 bitcoins per day… Reports indicate that the ban on crypto mining in China and the exodus of mining rigs seeking new hosting may take an extended period to resolve. Bit Farms is well positioned to take advantage of the significantly improved economic opportunity.