The Bitcoin mining market is in the midst of a huge change that hardly anyone has mentioned.
Genesis Mining’s head of operations, Philip Salter, recently told Bloomberg that miners have shifted from China to the Scandinavian countries, namely Sweden and Norway, and that this is described as “one of the biggest developments” in the developing industry.
Salter emphasized that unlike communist China, which currently reigns in the global hash power arms race, these western countries are seen as safer and more stable.
As Bitcoin investors become more public and seek greater stability and security, it is highlighted that there is a crucial strategic transition from mining in China to mining in western countries such as Sweden.
It highlights that the profitability of the company’s Boden-based data center has historically more than tripled due to wet weather and the ongoing Bitcoin rally:
There were times when we didn’t make any profits, but our profitability has more than tripled last year.
The “Chinese coin” narrative
Bitcoin has long been criticized for being a “Chinese coin”.
Chris Larsen wrote an article without evidence, claiming that the country’s authoritarian government could eventually “block or reverse transactions” on the blockchain.
At least 65 percent of cryptocurrency mining is concentrated in China. This means that the Chinese government has the necessary majority to gain control over these protocols and can effectively block or reverse transactions.
The XRP affiliate said both Bitcoin and Ethereum are cryptocurrencies controlled by China, in an unsuccessful last-ditch effort to thwart the recent SEC case. These unconfirmed claims received strong criticism from members of the two largest communities.
However, China continues to lose its dominance in the industry as it continues to pose an obstacle to miners.
Last month, it was reported that miners were having trouble paying electricity bills as they were unable to convert cryptocurrencies to Yuan. Cryptocurrency exchanges have been banned in the country since September 2017.