DailyCoin
Published Jan 03, 2022 01:00AM ET
Updated Jan 03, 2022 01:30AM ET
Latin America to Boost More Bitcoin Mining in 2022
Latin America will be one of the regions where Bitcoin mining will grow the most in the world, according to the projections of the data analysis company, Arcane Research. The prediction is that the cryptocurrency’s hashrate will continue to be geographically distributed even more in 2022.
Since China began its crackdown on BTC mining in mid-2021, miners have moved their operations to other countries. Among the places where Bitcoin mining occurred the most are the United States, Kazakhstan, Russia, Canada, and Iran among others.
China came to generate just over 70% of global BTC mining before the cryptocurrency was banned. Last October, the United States displaced the Asian giant and took over the leadership of Bitcoin mining.
Although Chinese miners have already emigrated to different countries with laws and regulations more tolerant to mining, the Arcane report considers that the movement of miners will continue during 2022 and many of them will choose Latin American countries such as El Salvador that offer legal guarantees and clean energy to miners.
In the opinion of the company’s analysts, the rapid geographic change of many mining companies shows that despite being “a physical industry, it is highly mobile and the geographic distribution of the hashrate can change rapidly”.
Energy consumption will continue to be a hot topic in 2022
On the other hand, the geographical distribution of mining will also not stop as “Bitcoin’s energy consumption will continue to be a hot topic in 2022, leading certain jurisdictions to ban Bitcoin mining – while other energy-rich jurisdictions will embrace the industry”, adds the report.
Mining prospered for several years in China, because the country offered optimal conditions for the industry. Lower labor, energy resources, and equipment maintenance costs.
When the Chinese government decided to launch its own digital currency (CBDC), everything changed and the persecution began. The miners then had to flee and move their equipment to nearby countries or North America where the activity grows incessantly. However, since the end of 2019 many were already warned of what was coming.
On the Flipside
Why You Should Care
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
[contact-form-7] You can always unsubscribe with just 1 click.
Continue reading on DailyCoin
Written By: DailyCoin
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.