North American Mining Operations to Flourish During China Crackdown
There is much speculation about how China’s impending crackdown on mining operations will affect the Bitcoin market moving forward. The simplest, and perhaps most accurate, is that the decision puts North America in a position to become the next leading hub in cryptocurrency mining. Since Bitcoin began to gain popularity, China and Russia have dominated most of the 500 megawatts (MW) of computing power used to run the Bitcoin blockchain. While North America has substantially grown its footprint, the continent currently accounts for only a very small percentage of overall mining activities.
There is a common misconception that China’s rollback on mining will slow down overall Bitcoin mining and transaction verification, when in reality, companies like HashChain Technology, who operate out of ideal locations like Canada, have the capacity to fill the computing power void. The company can increase the amount of hashes won and therefore net more coins while still verifying transactions. This will not affect the distribution of currency or increase bottlenecks on the blockchain. In fact, it is often miners in China who vote for less transactions per block. With China accounting for roughly two thirds of the world’s mining operation, they have forcefully maintained this approach. Without their ability to vote, we could see more transactions on each block and reduced time per transaction. This is one of Bitcoin’s key issues as news of bottlenecks and long transaction time litter the forums.
What does this mean for existing mining operations? There is potential upside. If Bitcoin prices remain the same or go up in value, Hashchain Technology receives better ROI for our mining operations because the algorithm will automatically reduce the difficulty to account for less miners, and therefore consume less computing power and overhead costs to solve each block. If Bitcoin takes a dip, stemming from concerns of those who are wary of its future during this transitional period, HashChain can still balance that change with lower electricity and computing costs.
The bottom line is that cryptocurrency is built to stand the test of time. It is kept alive because people believe in its core mission and understand the influence it will have on our future economies. China was one of the earliest to drive interest in Bitcoin and build it into what it is today, but that country’s interest is no longer required to keep it afloat. People from all over the world believe in it, invest in it and will keep it moving forward. HashChain continues to scale operations, beginning with the addition of the 5,000 units and a 20 megawatt facility in Montana (that would be nearly 5% of the world’s computing power) awaiting installation, and looks forward to a profitable future.