Bitcoin at energy crossroads as miners flee China
Will ex-Chinese mining rigs tap Iranian hydrocarbons, or seek greener power sources in North America?
Bitcoin miners are fleeing China after Beijing imposed a regulatory crackdown. This has created a big opportunity for the power-hungry cryptocurrency to end its reliance on cheap Chinese coal-fired power and clean up its image. The energy markets where they redomicile will be reshaped by new, decentralised revenue streams – and redefine bitcoin’s contentious carbon emissions footprint.
This time it is for real.
The People’s Republic of China, the bitcoin mining capital of the world, has tried to ‘get tough’ with bitcoin so many times before. Now Beijing is finally following through on its threats, prompting several mining pools to pause operations or shut down entirely.
This has triggered an exodus of ex-Chinese mining capacity to friendlier jurisdictions around the world where electricity is cheap.
China currently hosts around 65% of the world’s total bitcoin mining capacity. Where will these rigs go?
Initial indicators suggest many will flock to N…