The diaspora of Bitcoin mining from China to the United States continues to increase. This time, a new massive purchase was announced, agreed between a mining company in the United States and the manufacturer Bitmain. The negotiated ASICs belong to the S19s series.
The company in question is Core Scientific, who join other major western firms in “mammoth purchases” of mining equipment. In this way, the migration of Bitcoin mining from China to North America continues to develop.
The purchase consists of about 17,595 machines, of which some are already operational. The rest are in process and they will be installed until next September.
The United States consolidates itself as one of the main players in the Bitcoin mining business
According to data from the Cambridge University Center for Alternative Finance, China ranks first in Bitcoin mining. Next is the United States. Despite the fact that the difference between one and the other seems abysmal, since last year a process of decentralization of activity has begun.
While China accumulates 65% of the total hash power of Bitcoin mining, it has decreased significantly. While, on the contrary, in EE. The USA, which ranks second after the Asian country, the growth of mining activity has increased by more than 70%.
Other countries, such as Russia or Kazakhstan, have shown significant levels of growth in this business. Regarding Latin America, Venezuela stands out as one of the most outstanding actors, occupying a place in the top ten in hash power.
It should be borne in mind that this recent shipment of Bitmain is the largest shipment to the United States since the pandemic began. The aforementioned agreement, according to Forbes, was sealed at the beginning of the year, being delayed by the measures related to COVID-19.
Core Scientific Magnitude
Core Scientific is one of the most important companies in the field of Bitcoin mining in the United States. The firm owns about five gigantic farms spread across the territory of the North American country. Of these, four are divided between North Carolina and Georgia and one in Kentucky.
According to web portal, the firm is responsible for providing solutions in the field of Artificial Intelligence (AI) and Blockchain technology. Among the areas they cover is Bitcoin mining.
Also, the combined hashing power of the five farms totals 381MW. At the time, Russel Cann, the company’s CCSO stated that this capacity will expand to 450MW in a short time.
“As part of our market monitoring efforts, we are actively tracking this increased interest in hashrate growth through Bitcoin mining in North America. In fact, the growth of our team is based on that ”, Cann assured.
Another factor to consider is that the energy used to keep the machines active comes mainly from coal and natural gas.
The best place for digital mining
If you compare the advantages offered by the countries that monopolize the majority of the hash for Bitcoin mining, you can see some contrasts. For example, electricity in China is much cheaper than in the US. USA However, in the Asian country there are more restrictions, attempts to control and pressure by the State.
The freedom to exercise economic activity within the United States. The USA makes it one of the ideal sites for Bitcoin mining. Thus, 2019 can be considered one of the peak years for business in that nation. It must be remembered that firms like Bitmain itself installed a gigantic farm in Texas. For their part, the German IG and Blockstream did the same.
Likewise, it should be borne in mind that the mining companies operating in China are of an old generation. They can continue to operate at a profit thanks to low electricity costs. In the USA In the USA, they are not profitable, so companies are obliged to purchase new generation equipment.
This highlights a fact of great importance: consumption efficiency. ASIC manufacturers have evolved their miners, so their machines consume less and less electricity while increasing their hashrate power.
The new stage of Bitcoin mining could have its epicenter in the United States, while in China, as the difficulty of mining increases, obsolete equipment will be forced to disconnect. This process would be operating right now, which explains why the hash power in China continues to decline, while that of the US. USA continue to climb freely.
Some data to consider
- The average cost of electricity in China is $ 0.02 per Kilowatt / hour. While in the USA USA it is $ 0.12.
- The Core Scientific purchase is the largest ASIC shipment from Asia to the US. USA this year and one of the largest in the history of the business.
- Core Scientific’s hashing power could exceed 450MW.
- 65% of the world’s mining farms are found in China.
The information in this content has been extracted from reliable sources detailed below:
* Professional handling of content by the authors of CryptoTendency.
* External sources: Forbes.com, corescientific.com and cbeci.org.