How Has The Bitcoin Mining Equation Changed In The Last YearShreya
The last year has been a game-changer for the entire cryptocurrency industry with several new emerging bitcoin mining trends and projects. One of the major new developments seen in the crypto industry was the massive growth of the non-fungible token market and the emergence of the metaverse. NFTs and metaverse opened the doors for artists and creators to a new lucrative market powered by blockchain technology. However, it wasn’t the only massive change that the crypto industry foresaw last year.
One of the other monumental events in crypto history was The Great Mining Migration. The Great Mining Migration was the major shift of mining operations from China to different countries upon China’s ban on Bitcoin mining in the country. This decision of China completely shifted the dynamics of the Bitcoin mining industry and caused the price of Bitcoin to plummet.
This decision was apparently prompted by China because of the large carbon footprint that the Bitcoin mining industry left behind and its hazardous effect on the environment. Following the migration, Bitcoin miners shifted their bases to different countries, which led to a massive change in the mining equation.
The Latest Statistics for Bitcoin Mining
In 2020 and early 2021, China was the leading country in the Bitcoin mining industry with the USA (6.8%), Canada (9.55%), Ireland (4.68%), Malaysia (4.59%), Iran (3.11%), and Germany (4.48%) as the top leaders. However, following the restriction of Bitcoin mining in China, the dynamics have completely shifted.
Earlier, China was leading the Bitcoin Mining industry with over 65% of the hash rate majority in the world. However, following the mitigation, the dynamics of the Bitcoin mining industry completely shifted, and China became the country with the lowest number of Bitcoin miners.
In early 2021, the miners started to migrate to different countries such as North America and Central Asia, looking for more suitable conditions for their mining activity. This change put the USA at the top, followed by Kazakhstan in second place.
The shift also helped other countries to boost the presence of Bitcoin miners in their region. Here is the new distribution of global mining hash rate power.
|Country||Share of Global Hash Rate of September 2019||Share of Global Hash Rate of August 2021|
This distribution shows a significant change in the mining industry and the new emerging trends. This distribution is largely affected by the favorable conditions presented by the locations. In the US, Texas has become one of the hottest spots for Bitcoin miners to relocate because of its favorable conditions.
Not only does Texas offer open land, but it also has a deregulated power grid that helps to lower the cost of Bitcoin mining. Moreover, another interesting factor to notice is that following the exodus, miners are now looking for renewable sources of energy that not only lower their overall costs but also help to ensure a lesser carbon footprint.
Other Trends in Bitcoin Mining
Apart from the location shift and distribution of mining hash rate, there are several other trends that the Bitcoin mining industry observed in 2021. There have been several new mining hardware launched in 2021 that have made Bitcoin mining easier. Moreover, this mining hardware has the capacity to tackle the growing hash rate complexity, which has reached the highest point in 2022.
Moreover, considering the high cost of mining hardware, users are now looking for external platforms such as G2Miner that offer mining hardware procurement services. Projects such as G2Miner make it easier for new miners to purchase mining equipment and set up their mining operations.
2021 has been disruptive for the entire cryptocurrency industry with several monumental changes and new trends that will shape the future of the cryptocurrency and Bitcoin mining industry. The Bitcoin mining hash rate is at the highest of all times, which has made it difficult for the miners to make a profit using their existing hardware.
As a result, miners are now investing in the latest mining equipment to reduce their cost of operations, shifting to places with cheaper electricity and resources. Moreover, projects such as G2Miner are making it easier for new miners to join the lucrative mining industry.