- A report analyzing countries such as El Salvador, Argentina, Paraguay and Venezuela suggests they increase their hashrate in 2022.
- Meanwhile, the United States and Canada continue to lead the options for mining Bitcoin after mining machines were turned off in China.
Latin America will be one of the regions where Bitcoin mining will grow the most in the world, according to the projections of the data analysis company, Arcane Research. The prediction is that the cryptocurrency’s hashrate will continue to be geographically distributed even more in 2022.
Since China began its crackdown on BTC mining in mid-2021, miners have moved their operations to other countries. Among the places where Bitcoin mining occurred the most are the United States, Kazakhstan, Russia, Canada, and Iran among others.
China came to generate just over 70% of global BTC mining before the cryptocurrency was banned. Last October, the United States displaced the Asian giant and took over the leadership of Bitcoin mining.
Although Chinese miners have already emigrated to different countries with laws and regulations more tolerant to mining, the Arcane report considers that the movement of miners will continue during 2022 and many of them will choose Latin American countries such as El Salvador that offer legal guarantees and clean energy to miners.
In the opinion of the company’s analysts, the rapid geographic change of many mining companies shows that despite being “a physical industry, it is highly mobile and the geographic distribution of the hashrate can change rapidly”.
Energy consumption will continue to be a hot topic in 2022
On the other hand, the geographical distribution of mining will also not stop as “Bitcoin’s energy consumption will continue to be a hot topic in 2022, leading certain jurisdictions to ban Bitcoin mining – while other energy-rich jurisdictions will embrace the industry”, adds the report.
Mining prospered for several years in China, because the country offered optimal conditions for the industry. Lower labor, energy resources, and equipment maintenance costs.
When the Chinese government decided to launch its own digital currency (CBDC), everything changed and the persecution began. The miners then had to flee and move their equipment to nearby countries or North America where the activity grows incessantly. However, since the end of 2019 many were already warned of what was coming.
On the Flipside
- In addition to El Salvador and Venezuela, Paraguay and Argentina appear on the hashrate map as other countries with growth potential from BTC mining.
- Some mining companies such as the Canadian Bitfarms Ltd., with Argentine capital, won a cheap electricity contract in that country to produce cryptocurrencies. It plans to install a gigantic mining farm with 55,000 machines to produce 11,774 Bitcoins.
Why You Should Care
- The volatility of the cryptocurrency has not stopped mining centers from continuing to grow in Latin America, North America, Asia and Europe. As the hoarding of Bitcoin grows as an instrument of protection against inflation, interest in mining is on the rise.