News
Now you are reading
One million cryptocurrency miners are moving from China to Canada
0

One million cryptocurrency miners are moving from China to Canada

created Michał SielskiJuly 22 2021

A blockage of cryptocurrency farms in China has stopped growth blockchain marketbut you may find that in the long run only for a while. The excavators have been turned off, but many of them will soon return to their strenuous work on adding more cryptocurrency blockchains. Companies Optimum Mining Host i Black Rock Petroleum Company they have just signed an agreement under which 1 million excavators from closed mines in China will be transferred to Canada. They will go to three different locations in the province Alberta.

Why did China, which was responsible for the vast majority of Bitcoin mining worldwide at the beginning of the year, suddenly turned its back on the cryptocurrency market? The official version of the People's Bank of China reads like this:

"Virtual currency trade disrupts the normal economic and financial order, carries with it the risk of illegal and criminal activities such as illegal cross-border transfer of assets and money laundering, and seriously undermines the security of human property." 

This statement by the largest national bank in China was followed by concrete actions by the authorities. Subsequent cryptocurrency mines had to contend with raids by state services, which had no problems finding inaccuracies, which in turn resulted in the liquidation or closure of companies. For obvious reasons it was impossible to win this clash.

Everyone knows, however, that even if the officially stated reasons are true, they are only partially true. China is currently on the final straight to introduce its own cryptocurrency into the economic circulation - digital yuan. The first tests in metropolitan areas of millions have long ended and the authorities announced that they were very positive. And this was to be the last step before the widespread use of the digital yuan, which will be the official state cryptocurrency, to help not only in local exchange, but also - and perhaps above all - to reduce costs in international trade. So we are more months than years away from it, so it's hard not to draw conclusions that China is simply clearing the field so that the state cryptocurrency can easily take over most of the market.

The excavators from China will go to Canada

However, excavators from closed mines in China will not stand idle for a long time. It has just turned out that the biggest players have already found a solution and are about to return to the game for big money. Optimum Mining Host has just signed a contract with Black Rock Petroleum Company, thanks to which it will transfer as much as 1 million. excavators for three locations in the province of Alberta. The transfer will take two years, but ultimately the three plants producing natural gas will receive 200, 300 and 500, respectively. excavators.

It is also known that this is not the only big contract that will see the light of day any moment. Talks on this topic are ongoing, and the mines may not only not lose, but even benefit. In Canada and the USA, there are much greater possibilities of using renewable energy sources, which is very important recently in the discussion on the energy consumption of blockchain technology. Therefore, energy will not only be "clean", but also cheap, which is important due to the cost of mining the cryptocurrency. The business environment is also much friendlier and, above all, predictable. 

Therefore, there are many indications that in the long run, the cryptocurrency market may turn out to be victorious again. Will this translate into a better sentiment on the cryptocurrency market, where the price of Bitcoin has recently dropped below 30? USD? Time will tell. 

What do you think?
I like it
0%
Interesting
100%
Heh ...
0%
Shock!
0%
I do not like
0%
Detriment
0%
About the Author
Michał Sielski
Professional journalist for over 20 years. He worked, among others, in Gazeta Wyborcza, recently associated with the largest regional portal - Trojmiasto.pl. He has been present on the financial market for 18 years, he started on the Warsaw Stock Exchange when the shares of PKN Orlen and TP SA were just being introduced to the market. Recently, his investment focus has been exclusively on the Forex market. Privately, he is a parachutist, a lover of Polish mountains and a Polish karate champion.