While Bitcoin hit $40,000 just a couple of weeks ago, it now stands around $34,000 and change.
Some analysts are attributing that to an ongoing Chinese crackdown against Bitcoin in the form of both mining and purchasing.
“China’s crypto restrictions have been dominating the headlines and taking a toll on market sentiment since mid-May,” writes Omkar Godbole at Coindesk. “The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China published a note on May 18, confirming a ban on crypto services and initial coin offerings originally implemented in 2013 and 2017.”
So what’s happening to Bitcoin minors? According to Godbole’s coverage, many are moving to countries like Kazakhstan and Russia. Some are even coming further west to the United States.
Unlike other guilds of regional Bitcoin miners, the North American community of Bitcoin miners has suggested it will commit itself to greener and more ecological practices, especially after some direct criticism by famed market mover Elon Musk.
Now, Digital Journal/AccessWire reports that a company called Compass is establishing what’s called the North American Bitcoin Mining Index (NABMI) to provide transparency.
“Studied and compiled over a six month period, Compass Mining’s NABMI covers the full landscape of North America’s evolving mining landscape, includes insights from dozens of industry insiders, and offers a full analysis of the ongoing shift in Bitcoin mining toward both the US and Canada,” writes an unnamed author.
“From the region’s top public mining companies to off-grid mining startups, NAMBI breaks down the real state of Bitcoin mining in North America and clarifies its limitations and growth potential in energy markets, hosting capacity, hardware manufacturing, and more.”
The same coverage documents some of the move from China this way:
“Historically, the majority of Bitcoin mining hashrate resided in China. With the invention of the Bitcoin mining ASIC in 2013, strong economies of scale emerged in China, taking advantage of cheap excess energy and robust hardware markets. Indeed, some 65% of hashrate was located in China as of April 2020. Recent regulatory changes have triggered a mass exodus of hashrate from China. Key industry players are now conducting herculean logistical transfers while searching for cheap energy sources and hosting facilities.”
Look for more BTC volatility as summer moves on.
