The Bitcoin (BTC) mining market is in the midst of a major shift that almost no one is talking about. Philip Salter, head of operations at Genesis Mining, recently told Bloomberg that miners are moving from China to the Nordic countries, namely Sweden and Norway. These countries are safer and more stable, Salter says, unlike China, which is now reigning in the global hashrate race:
“AS BITCOIN INVESTORS BECOME MORE PUBLIC AND WANT MORE STABILITY AND CRITICAL SECURITY, THERE IS A VERY IMPORTANT STRATEGIC TRANSITION FROM MINING IN CHINA TO MINING IN WESTERN COUNTRIES LIKE SWEDEN.”
It adds that the profitability of the company’s Boden-based data center has more than tripled due to historically wet weather and the ongoing Bitcoin rally:
“THERE HAVE BEEN TIMES WHEN WE HAVE NEVER MADE A PROFIT, BUT LAST YEAR OUR PROFITABILITY HAS MORE THAN TRIPLED.”
The “China coin” narrative for Bitcoin
Bitcoin has long been criticized by those who see it as a “Chinese coin”. Former Ripple official Chris Larsen has written an article claiming that, without evidence, the country’s authoritarian government could “block or reverse ” transactions on the blockchain:
“AT LEAST 65 PERCENT OF CRYPTO MINING IS CONCENTRATED IN CHINA. THIS MEANS THAT THE CHINESE GOVERNMENT HAS THE MAJORITY NEEDED TO HAVE CONTROL OVER THESE PROTOCOLS AND CAN EFFECTIVELY BLOCK OR REVERSE TRANSACTIONS.”
The company that issued XRP said in a note to the regulator to block the latest SEC lawsuit that both Bitcoin and Ethereum are Chinese-controlled cryptocurrencies. These unconfirmed claims have drawn strong criticism from some of the community’s biggest members.
But China also continues to lose its dominance in the sector as it continues to create barriers for miners. Last month, it was reported that miners were having trouble paying their electricity bills because they could not convert coins into Chinese yuan. Cryptocurrency exchanges have been banned in the country since September 2017.
With climate change a major political issue, the power-hungry Bitcoin raises some concerns about its carbon footprint. In October, The New York Department of Financial Services (NYDFS) urged crypto companies to consider the risks involved. U.given that countries such as Norway rely mostly on green energy, the ongoing change could significantly reduce the amount of CO2 emissions linked to Bitcoin mining, Yesil reported today.