China is the leading country in terms of Bitcoin mining hash rate. The percentage of the total hash rate was above 50% for years. This is something that is changing.
The second largest economy in the world has carried a love/hate relationship with cryptocurrency. For a while, it was very open to Bitcoin mining, since it brought in so much revenue. However, there is a push of late by China to separate itself from cryptocurrency of today.
Much of this is due to the fact the country is experimenting with its own digital currency. This means that it wants to eradicate the others if it can.
Miners in China have started to feel the pinch as the government started to increase it dislike for crypto. It banned exchanges which make it tough for miners to turn their rewards into local currency, a move that is needed to pay the electrical bills.
This is another cause for concern. China is experiencing a coal shortage which is causing unreliability to the electrical grid in many areas. This obviously hinders their ability to reap the benefits of mining, since reliable energy is required.
All of this is resulting in an exodus from the country. The net recipient of this move is the Nordic countries. Many believe the shift in mining hashrate, geographically, is a story that few are looking at. Nevertheless, it is a big deal.
One of the big steps in Bitcoin's transition is the fact that mining is becoming more open. It is now a viable path to follow. Many miners are finding their company's stock onto public exchanges. This is only furthering the acceptance of the financial community.
We also see the shift breaking up the Chinese monopoly. While they are still far ahead of everyone else, the fact that it is believed the hashrate dropped below 50% is viewed as a big step. Bitcoin prides itself on decentralization and the fact that hashrate is spreading out geographically only feeds into this.
At the same time, the energy in the Nordic countries is not only less expensive than in many areas of China but also comes from renewables. We also can add in the fact that it is a cold environment, allowing mining machines to require less cooling.
Here is an example of how the global nature of Bitcoin causes a shift when a country's policy is non-conducive. People will simply pick up and move to a country that is more accommodating to what the company's need.
In the past, I pointed out how the United States is rapidly falling behind in the crypto game due to its onerous approach towards cryptocurrency. Whereas the country could ascend to the global leader, further cementing itself as the big banana, it rather try and protect the old system.
Ultimately, the winner out of all this will be those countries that have the foresight to realize that this is the path to global competitiveness.
For the moment, China appears to be lacking in this vision also.
The miners are opting out of the Communist system, at least with their mining rigs. Those are ending up in the snow banks of the Nordic region.
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