China has become a kind of ‘dead zone’ when it comes to Bitcoin (BTC) and cryptocurrencies in general. 75% of the world’s total BTC mining hash rate had previously come from China, and ever since the ban had been put into effect, the world’s flagship crypto had taken a huge hit along with the entire crypto market and industry. Moreover, the miners had been ordered by the Chinese authorities to cease mining operations in several regions, chief among which being the likes of the Xinjiang and Sichuan areas. Yunnan had also been targeted, as it is the 4th biggest BTC producer.
Continued pressure and persecution from the government had ultimately led to an exodus of sorts when it comes to the Bitcoin miners present in China. As the authorities close in on all of the miners, traders and exchanges and look to crack down on them with an iron fist, it looks as if fleeing the nation would be the only viable option left. As such, many are now considering moving to the United States, with Texas serving as the primary target of migration for now.
Texas becoming more supportive of cryptocurrency
As previously mentioned, Texas is quickly becoming the destination of choice for the BTC miners and for a good reason. Senator Ted Cruz had made it known that he supports cryptocurrency and wants the state of Texas to fully embrace the industry. Furthermore, the state also possesses extremely low energy prices, some of the lowest in the world in fact. Texas’ share of renewables has also been observed to be experiencing consistent growth.
Moreover, apart from Ted Cruz, nearly all of the bankers and political leaders have adopted a pro-cryptocurrency stance, making Texas a dream destination in essence for the BTC miners fleeing China.
Bitcoin Exodus
Nic Carter, a crypto analyst and partner of Castle Island Ventures, recently stated that when we take the massive drop in the flagship crypto’s hash rate into consideration, it would appear extremely plausible that various installations are indeed being forcibly shut down throughout the entire nation. Carter, therefore, seems to believe that somewhere between 50% to a maximum of 60% of BTC’s overall hash rate shall eventually leave China behind and relocate elsewhere.
As of now, the Bitcoin network’s actual hash rate is down by over 30% from its previous peak, which had been reached on the 13th of May last month.