Bitcoin Hashrate Moving To Scandinavia As China’s Dominance Dwindles

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Bitcoin mining in China

Bitcoin Hashrate Moving To Scandinavia As China’s Dominance Dwindles

China’s Bitcoin hashrate dominance is dwindling further as more mining firms move operations out of the communist state and into Scandinavia.

China still has by far the largest amount of Bitcoin miners and dominates the hashrate of the leading cryptocurrency.

However, due to government interference and power issues, more Bitcoin mining firms are opting for the political stability and reliable energy supplies Scandinavia offers.

According to 8BTC, China has enforced ‘regulatory agencies’ and ‘strict measures towards cryptocurrencies’ such as banning exchanges, making it harder for Bitcoin miners to operate there.

China is losing its Bitcoin hashrate dominance

This is all resulting in a ‘gradual but steady migrating to countries that present more friendly conditions for their industry.’

Head of operations at Genesis Mining Philip Salter goes further, claiming that Chinese miner migration is one of the biggest developments in the Bitcoin industry today.

‘There is a very important strategic shift away from mining in China to mining in western countries like Sweden as Bitcoin investors become more public and want more stability and critical safety,’ claims Salter.

Plunge In Electricity Prices In Scandinavia Is Also Attracting Bitcoin Miners

Scandinavia has seen relatively mild weather in the last 20 years, which helped boost production from hydroelectric plants.

bitcoin mining profitable

And the long lasting weather trend is helping to keep electricity costs close to zero, and about the third of the price in Europe’s biggest power market, Germany.

Phillip Salter detailed how Genesis Mining had tripled its profits from its operations in Sweden in 2020 alone, which was largely due to extremely low electricity costs.

Furthermore, Bitfury exec, Tyler Page said the interest in setting up Bitcoin mining operations in Norway had really taken off last year.

‘We have seen a notable up-tick in investor appetite for Bitcoin mining opportunities in Norway,’ said Page. ‘[Last] year’s energy prices were particularly low as Bitcoin prices have increased.’

China’s Bitcoin Hashrate Dominance Is Dwindling

It was believed that China still powered 65% of the Bitcoin hashrate, but many now believe this to be over exaggerated.

According to the Cambridge Centre for Alternative Finance (CCAF), the Cambridge Bitcoin Electricity Consumption Index (CBECI) that shows China with 65% hashrate is outdated.

According to a report by Bitooda, China only powers 50% of the Bitcoin hashrate, with the US second at 14%, up from 6% on the CBECI data.

This report is from July 2020, so if it was accurate then, we can expect it to be less than 50%, today.

If Bitooda’s report is accurate, it’s believed that Canada powers 7% of the Bitcoin hashrate, and Iran, which recently sanctioned a huge national mining farm, powers 8% of the Bitcoin hashrate.

China is losing its Bitcoin mining hashrate dominance

Scandinavia Offers Bitcoin Miners Stability And Cheap Electricity

China has long dominated the Bitcoin hashrate, but that is being eaten away as the rest of the world catches up.

China’s controlling communist regime ensures business operations for any Bitcoin miner are never certain. Added with China’s power struggles this last year, and it’s no surprise bigger mining data centres are moving out.

Scandinavia offers some of the most stable regulations to operate in, and given the electricity costs there are some of the cheapest in the world, it seems like a no brainer for the bigger companies to migrate there.

China is losing its Bitcoin hashrate dominance, and as the race for turning energy into value heats up, I expect more to move away and into safer jurisdictions.

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