Crypto miners flee to Russia and Canada
But the Chinese authorities could lift the mining ban

China's poor handling of cryptocurrencies sparked the Great Mining Migration that drove most of the miners out of the region Russia, the United States, Canada and Kazakhstan have all welcomed bitcoin miners and now top the list of bitcoin hashrate contributors These regions offer mining-friendly policies, along with cheap consumer electricity and ideal weather There are rumors that China may lift its mining ban. Will we see miners return to China? In May 2021, China triggered one of the largest downturns in Bitcoin history. After making Bitcoin mining illegal, Bitcoin price fell from a high of 60,000 to as high as 29,000 while the Bitcoin hashrate plummeted.
China, which once contributed 45% to the global bitcoin hashrate, no longer contributes anything to the bitcoin mining pool. The Chinese ban triggered what is now known as "Great Mining Migration", ie the migration of Bitcoin miners from China to other regions.
Desperate not to be put out of business, Chinese bitcoin miners turned to other countries. Bitcoin hashrate has rebounded to its highest level since the May ban, and BTC price has hit a new all-time high.
The new crypto ports
The bitcoin hashrate recovery was helped by the new mining ports, the United States, Kazakhstan, Russia and Canada. The United States now contributes 35% to the global hash rate, while Kazakhstan ranks second with 18% of the network's mining.
Russia now contributes 11.2% and Canada 9.6% to the global bitcoin hashrate. Additionally, these regions turned out to be welcome to Bitcoin miners as they offer cheap consumer electricity and crypto-friendly policies.
Russia's Siberian Irkutsk region has hosted the largest number of bitcoin miners in the country. Siberia is able to support bitcoin mining as it has an abundance of untapped hydropower (only 20% is currently used by estimates), making it a preferred destination for environmentally conscious miners.
The region's climate is also perfect for cooling the large number of ASICs in the industry. The Russian government has welcomed miners despite its ban on Bitcoin as a currency.
The scenario is almost identical in Canada, with ideal weather and an abundance of consumer electricity. In June, Black Rock Petroleum announced a deal that, if done, could lure the lion's share of the bitcoin mining industry to Canada.
The other side of the coin
Bitcoin's electricity needs have remained its Achilles heel Multiple power outages occurred in cities in Iran as miners poured into the region. In the United States, local authorities have raised concerns about the impact Bitcoin mining has on ordinary electricity consumers What if China lifts the mining ban?
Ever since Bitcoin hit a new all-time high, rumors have been circulating that China could lift its ban on crypto mining. The rumors most likely picked up pace after China's National Development and Reform Commission said it would not add virtual currency mining to the banned industries until it is given public options.
Days later, the commission announced that the United States had overtaken China as the largest bitcoin mining country. Many interpreted this to mean that China regrets its decision to ban crypto mining. So what would happen if China reversed its ban?
When China announced crackdown on Bitcoin mining in May, Kevin Pan, CEO of Chinese cryptocurrency mining company Poolin, stated, "We have decided to pull out once and for all. [We] will never come back."
The cost of moving a company and its extensive mining equipment would certainly be very high. Returning to China just a few months after the mining companies were kicked out would not be an economically wise decision.
In addition, Chinese cryptocurrency mining equipment manufacturers like Bitmain have stopped shipping mining equipment to mainland China. Even if the country lifts its mining ban, there is no guarantee that mining will not be banned again.
The best we could see is a revolt of new mining pools in China, rather than the return of the Chinese miners who fled during the great migration. The cost of moving and returning to China would be unsustainable for most mining companies.
Why should you care?
A return of Bitcoin miners to China is unlikely after the ban. However, the goal of crypto mining should now be to reduce their carbon footprint by switching to more environmentally friendly energy sources.
