Goodbye China, Arriba El Salvador. The long march of miners from China to other paradises
The Sichuan Province Development and Reform Commission (read, the CCP Local Government) and the Sichuan Energy Bureau issued a joint notice on Friday , ordering local power companies to "select, clean up and terminate ”The operations of the virtual currency miners by Sunday. Game over. The drop in mining activity is usually accompanied by a drop in the value of BTC which, again, promptly manifested itself.
Many Bitcoin mines in southwest China's Sichuan province, one of China's largest cryptocurrency mining bases, have been closed since Sunday after local authorities ordered to stop mining in the region on Friday. with very tough repression.
The ban also means that more than 90% of China's Bitcoin mining capacity is estimated to be closed, at least in the short term, as regulators at other major mining areas in China's north and southwestern regions have adopted similar measures and, in any case, will not allow the transfer of miners.
Some industry players had hoped that regulators in Sichuan, where hydropower is plentiful, might take a softer approach, but the latter order indicates hopes have been misplaced.
To minimize losses, BTC miners will now have to relocate elsewhere, and at this point the offer from El Salvador "Come here and mine with clean energy" becomes interesting, as are the offers of any other part of the country. globe where the cost of electricity is accessible. The small Central American state produces 20% of its energy from geothermal, about 87 MW, but the figure can be increased by the arrival of new investors. In addition, there are a number of countries in the Middle East / Gulf Area and South America that have energy costs comparable to China and less “closed” regimes for this type of investment.
Cost per K
Leaving aside Iran which has a tough stance on the matter, countries such as Argentina, Mexico, Qatar, Nigeria could become destinations for mining activities, as well as Brazil and the USA in the case of direct control of the source of generation. Surely the miners will not come to Europe, given the very high energy costs …
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The article Goodbye China, Arriba El Salvador. The long march of miners from China to other paradises comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/addio-cina-arriba-el-salvador-la-lunga-marcia-dei-miner-dalla-cina-ad-altri-paradisi/ on Mon, 21 Jun 2021 10:04:36 +0000.