As crackdowns take place, mining operations are living up to the DeFi credo
With mining operations around the world being shut down, changes are afoot in cloud hashrates.
The mining community is facing immense changes. Bootstrapped (and often illegal) operations are being shut down in China, Southeast Asia, and elsewhere, slashing global hashrate. But as some miners look for new homes for their rigs, transformations in this space may steer mining back to the tenet of DeFi.
A video showing a steamroller crushing 1,069 pieces of crypto mining hardware, altogether worth around USD 1.25 million, went viral in July. The stunt was organized after Malaysian police impounded the devices in a series of seizures conducted between February and April.
Keep looking around the world and you’ll find even more states cracking down on crypto mining. The Security Service of Ukraine shut down one operation involving 5,000 units of hardware, and the Chinese government essentially choked off all mining operations within its borders, where up to 70% of all Bitcoin hashrate was concentrated.
As miners in China dropped off the grid, mining became easier for anyone else who was still online. Operators from China have shown up in other places in the world, hoping to plug in and start up again. Kazakhstan is frequently named as one destination, at least 1 million rigs are already heading to Alberta, Canada, and Texas offers cheap and steady power.
Public officials have also attempted to woo miners who have been displaced, like Miami mayor Francis Suarez, who offered to provide cheap nuclear energy to anyone who sets up shop in his city.
These developments carry three consequences for the mining community.
The first is that a new geographical distribution of mining operations is more in line with the fundamental concept of decentralization in crypto. The concentration of Bitcoin and Ethereum mining hashrates in China has for years been criticized in some corners of the crypto community. A global redistribution that leads to mining pools landing where their operations can run at the highest efficiency aligns with the ethos of DeFi and unshackles crypto from the whims of a single sovereign entity.
Secondly, this may resolve another criticism faced by the entire crypto community — that mining isn’t green enough. Since May, more than 50% of the mining community’s hashrate dropped off the network because of changes taking place in China. That means outdated, inefficient gear went offline. With the complexity of mining climbing, a lot of that equipment may never be activated again. Instead, newer, safer, more energy-efficient replacements, like Bitdeer.com’s AntBox, will take its place.
The third outcome is that, for now, the complexity of mining has diminished. That means it is easier — and more profitable — to get into mining, particularly in the case of Bitcoin. It’s the perfect time to check out Bitdeer.com’s contracts for all-in-one mining and cloud services, which long-time miners recognize as the best option on the market — an endorsement that reflects Bitdeer.com’s leading position in cloud hashrates.
Bitdeer.com guarantees daily payouts of freshly minted coins that accumulate for a potentially huge payoff for clients. There is no need to purchase and set up mining equipment, worry about electricity, or sift through the nuances of mining algorithms. Bitdeer.com’s services are a great fit for anyone between the crypto-curious to seasoned maximalists who are in DeFi for the long haul.
Head over to Bitdeer.com and check out how cloud hashrates can work for you.
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