• Contact
  • Privacy Policy
  • Advertise With Us
  • Login
  • Register
Your Trading Edge Magazine
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe
No Result
View All Result
Your Trading Edge Magazine
No Result
View All Result

US will make up 60% of the world’s computing power in 2 years

January 15, 2022
in Finance
Reading Time: 5 mins read
A A
0
US will make up 60% of the world’s computing power in 2 years
0
SHARES
12
VIEWS
ShareShareShareShareShare

The vulnerability of Kazakhstan’s bitcoin mining industry was put on full display last week, when the country’s internet shut down in the midst of anti-government protests, sparked by rising energy prices.

The world’s second largest miner saw its hash rate or computing power that secures bitcoin, fall by double digits, in a dramatic pullback from the 18.1% it’s estimated to contribute, according to Cambridge Center for Alternative Finance. 

The disruption marked a big setback for a market that has looked to capitalize on a mining ban in neighboring China. Its hash rate has increased more than 10% since China’s ban last June.

“A lot of the older Chinese mining operations shifted to Kazakhstan,”John Warren, CEO of GEM Mining, a U.S.-based company reiterated. Before launching GEM’s mining operation in the U.S., Warren told Yahoo Finance he was approached about setting up operations in Kazakhstan with promoters touting its “cheap power” supply.

While cheap, the country’s electrical grid hasn’t been stable. In October, the Kazakhstan Electricity Grid Operating Company (KEGOC), which operates the national power grid, faced an energy supply crunch, citing both “a higher number of emergencies at power plants” as well as the “sharp increase in consumption of digital miners.”

The limited power supply is likely to prompt another mining migration — this time, out West.

In an interview with Yahoo Finance, Xive Mining co-founder Dibar Bekbauov said that many of the country’s mining companies are increasingly looking to the U.S. as “one of the top priorities” for expansion, largely because of the availability of cheaper electricity. 

“I believe that U.S. will be the biggest mining hub in the world,” he said. “More than 60% of the total hash rate will be in the United States within two years.”

Such a move would not come cheap or easy, according to Colin Harper, head of content and research at Luxor, a bitcoin mining pool and software company.

A worker fills out a form at the Whinstone US Bitcoin mining facility in Rockdale, Texas, on October 10, 2021. (Photo by Mark Felix / AFP) (Photo by MARK FELIX/AFP /AFP via Getty Images)

The U.S. is now estimated to account for 35.4% of bitcoin’s hash rate. Harper told Yahoo Finance that because the country provides both abundant power and a more robust rule of law compared to other mining hotspots, competition for materials to build a mining facility or space to lease has compounded over the last year.

Adding to the hangover are China-based bitcoin miners that relocated to the U.S. and North American companies expanding. As a result, Kazakhstan-based miners thinking of moving to the U.S. could face a sizable hit to their bottom lines.

Sizable enough, especially if they just settled in the country after migrating from China that, according to Harper, some of them “might throw in the towel.”

‘Green’ in the U.S.A

The favorable condition the U.S. offers bitcoin miners is higher access to renewable energy sources.

Bitcoin mining’s energy intensity remains a hotly debated topic between climate activists, academics and miners themselves. Miners aren’t necessarily incentivized to seek renewable energy but it’s become a major focus as the price of bitcoin has skyrocketed in 2020 and 2021.

According to an annual report from Luxor, “publicly traded miners (and those seeking to go public) will continue to “green” their operations by seeking renewables directly or purchasing carbon credits/offsets for two main reasons. First, companies will choose to do so voluntarily to “mollify criticism.” Second, ESG mandates from U.S. regulators will demand it.

Alex de Vries, founder of Digiconomist, an economics blog, is a staunch critic of the industry’s energy consumption. De Vries told Yahoo Finance in late August that “miners need cheap and stable power; and (obsolete) fossil fuels are simply better at delivering both.”

On Jan. 20, the U.S. House Energy and Commerce Committee will hold a hearing on the energy impacts of cryptocurrency, and bitcoin mining is expected to take a central focus.

In total Cambridge Center for Alternative Finance, clocks the industry as consuming 126 Terra watts hours (TWh) per year, which is more electricity than the Ukraine consumes and more than the electricity consumed by residential lighting and television in the U.S. However, these comparisons are not 1-to-1.

David Hollerith covers cryptocurrency for Yahoo Finance. Follow him @dshollers.

Akiko Fujita is an anchor and reporter for Yahoo Finance. Follow her on Twitter @AkikoFujita

Read the latest financial and business news from Yahoo Finance

Read the latest cryptocurrency and bitcoin news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn


Credit: Source link

ShareTweetSendPinShare
Previous Post

Bitcoin Price Analysis: Another Test of $44K

Next Post

10 of the best Metaverse crypto coins that may explode in 2022

Related Posts

MarineMax Expands Financial Flexibility with New Credit Facilities to Execute on Strategic Growth Opportunities
Finance

MarineMax Expands Financial Flexibility with New Credit Facilities to Execute on Strategic Growth Opportunities

August 9, 2022
5
Most Canadians cutting back on groceries, entertainment as inflation soars: Yahoo/Maru poll
Finance

Most Canadians cutting back on groceries, entertainment as inflation soars: Yahoo/Maru poll

August 9, 2022
4
LogicMark, Inc. To Report Second Quarter 2022 Financial Results on August 11, 2022, and Provide Corporate Update
Finance

LogicMark, Inc. To Report Second Quarter 2022 Financial Results on August 11, 2022, and Provide Corporate Update

August 9, 2022
5
How top-selling electric vehicles will be affected by new tax credit
Finance

How top-selling electric vehicles will be affected by new tax credit

August 9, 2022
7
Bed Bath & Beyond, GameStop, AMC all surge as meme stock mania makes a comeback
Finance

Bed Bath & Beyond, GameStop, AMC all surge as meme stock mania makes a comeback

August 9, 2022
4
Next Post
10 of the best Metaverse crypto coins that may explode in 2022

10 of the best Metaverse crypto coins that may explode in 2022

Recommended

Polygon gets a boost after being included in Disney Accelerator Program

Polygon gets a boost after being included in Disney Accelerator Program

July 16, 2022
3
ECB Recommends Mining Ban and Urgent Stablecoin Regulations

ECB Recommends Mining Ban and Urgent Stablecoin Regulations

July 13, 2022
7

A New Tool for Local Governments to Attract Future Residents

August 3, 2022
5
Paraguay’s new bill may turn the country into mining heaven

Paraguay’s new bill may turn the country into mining heaven

July 17, 2022
7
8 Tips for Supply Chain Managers

8 Tips for Supply Chain Managers

July 13, 2022
7
Your Trading Edge Magazine

This is an online news portal that aims to share the latest news about trade, finance, crypto and much more. Feel free to get in touch with us!

What’s New Here!

  • Vitalik Outs Himself as Having Used Tornado Cash
  • Circle says freezing wallets went against its beliefs on an open internet
  • Over 70k Ripple holders join class action lawsuit against SEC

Subscribe Now

Loading
  • Contact
  • Privacy Policy
  • Advertise With Us

© 2021 - ytemagazine.com - All rights reserved!

No Result
View All Result
  • Home
  • Feature
    • Market Commentary
    • Expert Advice
    • Columns
  • Trading
    • Shares and Trading
    • Technical Analysis
    • Trading Mindset
  • Crypto News
  • Finance
  • Subscribe

© 2021 - ytemagazine.com - All rights reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?