At one point in time, Bitcoin miners were mainly based in China and the surrounding area. Their influence was so valued that it was believed that Bitcoin could not survive without being mined in China. But after the mining ban and the beginning of “The Great Migration”, this narrative has changed significantly.
Bitcoin mining moves to …
Everywhere, everywhere, everywhere. Starting with the west. After the hash rate and network suffered from China’s wrath against the miners, the situation appears to be improving. Speculations as to where the next “mining hub” will be will be answered as more and more mining companies benefit from improving conditions.
They initiated HIVE Blockchain and Marathon Digital, mining companies from Canada and the USA. Recently, these companies have placed orders for mining equipment worth millions of dollars. Marathon gave Bitmain a contract for 30,000 machines valued at $ 120.7 million and plans to expand production to 133,000 BTC miners. HIVE, on the other hand, ordered 4,000 machines from Canaan in addition to the 6,400 machines delivered at the beginning of the year.
In addition, as companies like Compass Mining offer tax-efficient mining to their US customers, more miners could appear in these regions.
The mining migration is not limited to these 2 countries, however, as HIVE already has data centers in Sweden and Iceland. With Chinese miners already relocating their productions to Kazakhstan, Malaysia and Iran, it is safe to say that bitcoin mining is now becoming universal and not just dependent on China to keep the hash rate high.
But does this shift actually work?
Indeed it is. The hash rate has improved significantly after falling to a 2-year low in July. At the moment it is at a 45-day high and only appears to be rising. This is a confirmation that miners are returning to the network, and it also helps to strengthen the network as a whole.
The improvement seen in difficulty compression is evidence of this. The difficulty band experienced its worst compression in history in July of this year. This compression is now recovering, further reducing the chances of future surrender.
Relocating bitcoin mining operations to the west means not only a short-term recovery in hashrate, but also reduces reliance on a region and strengthens the network for future operations.