Competing for higher Bitcoin production in the United States
Source: medium
China's domination in Bitcoin production is no secret. According to the latest blog post by Alexander Liegl, Co-founder and CEO of Layer1, industry research shows over 60% of Bitcoin’s hashrate and 100% of Bitcoin hardware production are located in China.
In fact, less than 5% of Bitcoin’s hashrate and 0% of hardware production are located in the United States.
Source: medium
Layer1 Technologies plans to set up Bitcoin mining operations in Texas, strengthening Bitcoin's decentralization and usage of renewable energy. The usage of sustainable energy for mining is of high importance - Bitcoin is a form of energy storage.
Renewable energy companies often face energy surpluses within their regional boundaries. This meant that electricity storage is limited and often companies stop generating or harnessing energy until the surplus is used up. Bitcoin could change this phenomenon by storing excess energy. However it is unclear how the shift may affect the actual Bitcoin prices.
The lowering of Bitcoin's mining costs with renewable energy could also reduce Bitcoin's operational costs. The current dependence on mining hardware in China unbalances Bitcoin's decentralized movement. Thus Layer1 will introduce competition:
In Texas, world-class electricity prices, friendly regulation, and an abundance of renewable energy sources meet. It is here that we are rapidly scaling our mining operations to bring as much hashrate as possible back to the United States.
Source: medium
Whoever is future-ready in Bitcoin mining could have a larger say in improving Bitcoin's regulations and shape Bitcoin into a trillion-dollar asset class.
-tysler
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Dear @tysler
That came to me a bit as a surprise.
Is China still dominating? I thought that mining is very illegal and most miners moved out from China already ....
I've also never heard anyone calling bitcoin "a form of energy storage". Interesting point of view. Wouldn't you think that African countries would be simply amazing to mine Bitcoin (always sunny)?
I've lost you here. How can bitcoin store energy? That is very confusing to me. Would you mind to elaborate on that?
cc: @solarwarrior - you may find this post interesting
Upvoted already, Yours
Piotr
Hi @crypto.piotr,
China may not be mining Bitcoin, but Bitcoin hardware is manufactured in China. ASICs Antminer mining equipment are produced by Bitmain, which is headquartered in Beijing.
Energy such as oil, coal and nuclear power holds value. Hence Bitcoin, which is a final product of electricity, holds true power and value. Because it takes a lot of energy to mine Bitcoin, its true value may still be undervalued. However, this idea is still controversial.
Stay tuned for more crypto news on Gaming in Blockchain ;)
Hello, I had heard before that the US did not build hardware to undermine, but I did not know: "100% of Bitcoin hardware production are located in China." That surprised me.
On the other hand, I like projects that use clean and renewable energy, I hope they succeed. He commented that in the same sense, I think I remember that Paraguay had a company that was proposing something along the same lines, but using hydropower to generate its electricity to undermine.
Hello dear friend @tysler, they seem to be important changes, that is to say they will have an impact on the mining of BTC ... You say that it is not possible to know if it will affect the price ... according to your analysis the impact on prices would be positive or negative?
@fucho80
Hi @fucho80, we always know that competition businesses benefit its users. I can only speculate that better mining equipment will be developed in the future and this reduces mining operational costs. This may, in turn, increase the 'mainstreaming' of Bitcoin. But this does not have a direct effect on Bitcoin prices.
Regards esteemed friend @tysler.
BTC's mining rates in China are so high that they even represent a serious problem in terms of electricity generation for the Red Giant. Since the main way to generate electricity in China is hydrocarbon burning thermoelectric, this also has a direct impact on the environment and global warming.
Developing new forms of electricity generation that are friendly to the environment and are self-sustaining, for the support of BTC mining is a necessary step for humanity.
The people or companies that are undertaking in this sense will have a recognition on the part of the societies that would surpass in value to the obtained profits.
This is the present and the future of BTC mining.
Your friend, Juan
Hi @juanmolina,
Yes! This is exactly what I hope greener companies can address and move Bitcoin mining into a sustainable form of asset. High operational costs in electricity consumption can result in these companies to shut down and destabilize Bitcoin operations.
It is time companies be responsible for their global carbon footprints.
We should definitely all be responsible for our carbon footprints. But even more the big companies with their huge emissions.
Wow! I don't even want to think about what could happen with BTC if mining was interrupted for some reason.
Perhaps the price would rise because it would be mining less what would produce shortages?
Upvoted and resteemed @tysler
@tysler, In my opinion every aspect is dominated by something or someone. But Bitcoin Hashrate is one space on which everyone wants to hold the upper hand. Stay blessed.
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Wow, those are some really interesting statistics! China had really got it going on!
Nice approach. Many things are replaceable. Gold, and even oil by another resource, is certainly not necessary to sustain life (just the modern economy). However, energy itself is not replaceable. Could BTC one day be discussed beyond digital assets and as an E factor? Could our focus flow way from limited resources and toward freeing the unlimited potential lying deep within every human being? And BTC offering a glimpse of this proof.
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