As per Arcane Research, a data research firm, Latin America will be one of the locations where Bitcoin mining will expand the most globally. In 2022, the coin’s hashrate is expected to become even more regionally spread.
Miners have relocated their operations to other countries after China started cracking down on BTC mining in mid-2021. The United States, Kazakhstan, Russia, Canada, and Iran are where Bitcoin mining is most prevalent.
Before the cryptocurrency’s suspension, China accounted for slightly over 70% of worldwide BTC mining. Last October, the United States dethroned the Asian behemoth and assumed control of Bitcoin mining.
Although Chinese miners have already fled to nations with more favorable mining laws and regulations, the Arcane research predicts that this trend will continue until 2022, with many of them opting for Latin American countries like El Salvador, which provide legal protection and renewable energy.
According to the company’s experts, the quick geographic migration of many mining enterprises demonstrates that given its physical industry, it is highly mobile, and the geographic distribution of hashrate can vary dramatically.
In 2022, energy usage will remain a prominent concern
On the other hand, mining will remain to be distributed geographically, as “Bitcoin’s energy consumption will remain a prevalent issue in 2022, leading some jurisdictions to prohibit Bitcoin mining – while other energy-rich jurisdictions will welcome the sector, according to the research.
For numerous years, mining thrived in China because the government provided ideal circumstances for the business. As a result, costs of labor, energy, and equipment maintenance are all reduced.
Everything changed when the Chinese government developed its digital currency (CBDC), and the persecution started. The miners were forced to escape and relocate their equipment to neighboring nations or North America, where the mining industry increased. Nevertheless, many people have been warned about what is to come since the end of 2019.