Asset digging is a tradition in the United States. But instead of yellow precious metals, in North America one should dig for Bitcoin in the future. In the latest edition of the crypto compass, we look at the consequences of the Chinese mining ban and take a look at the reorganization of the hash rate.
That had caught the crypto sector off guard. When the Chinese government made tabula rasa on Bitcoin mining in June, many market observers were already painting the devil on the wall. But the signs become clear: Everything turns out very differently. Because instead of a mining “death spiral”, the world’s largest decentralized network is likely to emerge stronger from the China crisis in the medium term. This is evident from our analysis in the latest edition of the Kryptokompass.
Mining in North America: First Gold, Now Bitcoin?
The hash rate concentration in China has not only declined since the Chinese all-round blow. As we show in the crypto compass, mining companies have been drawn to other realms for some time. Regions like Central Asia and Scandinavia are popular among miners and – you can already guess it – the new place of longing for crypto miners is: North America. The China ban is likely to accelerate this trend significantly.
But what makes North America a promised land for miners? In our cover story we highlight two main reasons: cheap electricity prices and political stability.
The former has always been a crucial factor in Bitcoin mining. After all, the business is highly competitive, the margins thin and the running costs enormous. Whoever succeeds in wresting below-average electricity prices from energy providers wins. China was known for these very prices, the USA could become one. Because especially in states like Texas, where people are relying more and more on wind and solar energy, electricity is becoming cheaper and cheaper.
How you can benefit from the digital gold rush
While mining was a wild, unregulated field of activity in the early days of cryptocurrency, it is attracting more and more professional and even publicly traded companies. In the crypto compass we show how investors can participate in the new mining business and where investments are worthwhile.
As an example, reference is made at this point to Argo Blockchain (ISIN: GB00BZ15CS02). The London-based company had a market capitalization of $ 630 million by press time. Argo Blockchain already operates a number of mining farms in Canada and plans to launch a 200 MW mining facility in Dickens County, Texas. Argo CEO Peter Wall said:
We like to mine in North America. We started mining in Quebec in 2018 because we had access to cheap renewable energy. These incentives still exist because North America continues to benefit from very cheap energy. In Quebec, for example, we only pay 3.8 cents per kilowatt hour of electricity.
Early investors: rejoice inside: The share price of Argo Blockchain (ARB) is up 2.290 percent year-on-year.
If you want to read the entire cover story and find out which stock candidates are particularly exciting in the mining sector, we recommend the new edition of Kryptokompass.
By the way: As an active Kryptokompass subscriber you have the unique chance to win a much sought-after Playstation®5.