Digital gold rush: West America hit by Bitcoin mining boom

The mood in the crypto industry is generally bearish at the moment as Bitcoin continues to fall and threatens to push back into the $6,000 region. However, masses of BTC mining equipment are currently reaching Western America as a new digital gold rush begins there.

 

Bitcoin mining boom

From a price point of view, things are not looking too good for BTC. The correction is currently around 48%, the downward trend of the first six months is still intact. It is unlikely that there will be a “Christmas rally”, the sell-off will probably continue for the rest of the year.

However, some aspects of the industry are still showing solid growth, and the Bitcoin mining sector is one of them. According to a recent Nasdaq report, a new digital gold rush is taking place in North America.

For example, the business of BitOoda, a financial and brokerage firm advising Bitcoin mining companies and investors, is booming. According to executive Ryan Porter, there is great interest in mining, especially from Chinese companies and investors.

 

This is hardly surprising given the constant danger of regime collaborations in the communist country. China wants its own crypto currency and no others – and this forces companies to look for a more friendly climate.

Canada and North America will be the new port of call for Bitcoin mining companies seeking relative freedom from government intervention and a sufficient supply of ready-to-use, cheap electricity.

Texas is a state where conditions for Bitcoin mining are favorable. The report further states that local sponsors and business developers are working with companies like Bitmain to take over abandoned industrial sites.

 

Jonathan Hamel, founder and president of the Montreal-based Academie Bitcoin:

    “I believe we are moving towards a normalisation/commodification of the industry. It’s a good thing for Bitcoin: more locations, more decentralisation.”

 

California is another state that attracts investment. For example, the city of Cerro Gordo was sold for $1.4 million last year (Coin-Update.de reported). Investors plan to transform the ghost town into a BTC mining and blockchain center through the use of innovative water conservation technologies and energy procurement from solar and other renewable energy sources.

 

Energy efficiency still a big issue

Cheap energy will become an important incentive for BTC mining, especially after halving it, which will reduce block rewards by 50% and increase overall competitiveness. According to CoinShares research earlier this year, Bitcoin mining is heavily dependent on renewable energy compared to other industrial sectors.

 

Coinshares:

    “We calculate a conservative estimate of the penetration of renewable energy in the energy mix of the Bitcoin mining network at 74.1 percent, making Bitcoin mining more renewable than almost any other major industry in the world.”

 

The Nasdaq also lists several other locations in the USA and Canada that are attracting investors. China’s loss from increasing migration will be America’s profit as the digital gold rush gains momentum.

And that’s good news as it reduces China’s dominance in Bitcoin mining.