Bitcoin mining has been a topic of debate and intrigue for quite some time. The government and central banks are taking this point to impose a ban on cryptocurrencies in their region. The most important part about Bitcoin mining is that it is connected with the high consumption of fossil fuels and leaves behind a huge carbon footprint. Another important topic of discussion about Bitcoin is that buyers of Bitcoin in the United States seem to be worried about the coins mined in China.
It should be noted that China accounts for about 60% of the entire Bitcoin concentration in the world. Regions like Inner Mongolia and Sichuan are considered to have the largest number of crypto mines in their vicinity. Investors like Elon Musk and Kevin O Leary have also raised some questions about such a large amount of Bitcoin mining to be secluded in a small region. However, most Bitcoin mining machines in those regions are going out of commission and getting sold for nickels.
Bitcoin Miners want to Increase the Diversification to Increase the Decentralization
If a large portion of Bitcoin miners is present in a closely-knit place, it would be difficult to create a truly public community. Therefore, many crypto investors are supporting the idea of having more dispersal of Bitcoin mining rigs in different regions of the world. The main reason for the number in Bitcoin mining operations increase in Inner Mongolia and Sichuan was the presence of cheap energy resources to keep the mining functional.
However, when Hong Kong failed to comply with its annual ESG targets, the government decided to introduce a crypto crackdown. About this news, the Bitcoin price crashed. However, in the eyes of traders and analysts, this is a good sign for a close enough uplift. Now the miners in China are heading to the second-hand markets to find a good bargain for their mining equipment. Due to the increased supply, the prices of these tools have also gone down. According to experts, this action would introduce more diversity in mining and make the blockchain more decentralized.
Bixin Mustafa Yilham thinks that Bitcoin price corrections and the dissembling of Bitcoin mining rigs in China are a great sign for further appreciation. It is a known fact that mining is a profitable business model. In a situation when Bitcoin mining equipment is easily available, and the demand for Bitcoin mining is increasing, it would make way for new miners to take part in the process.
Yilham is the vice president of Global Business Development. When Bitcoin mining rigs would be present in many parts of the world, it would increase the underlying power of the flagship cryptocurrency. It would also greatly benefit all the stakeholders and allow them to have better investment insurance. Nevertheless, it could take some time to make this transition, during which the price point of Bitcoin can remain volatile.