Latin America to Boost More Bitcoin Mining in 2022 by DailyCoin

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Latin America to Further Boost Bitcoin Mining in 2022 A report analyzing countries such as El Salvador, Argentina, Paraguay and Venezuela suggests they increase their hash rate in 2022. Meanwhile, the United States and Canada continue to lead the options for mining after the mining machines have been turned from China.

Latin America will be one of the regions where Bitcoin mining will increase the most in the world, according to projections by data analytics firm Arcane Research. The prediction is that the cryptocurrency’s hashrate will continue to be even more geographically distributed in 2022.

Since China began cracking down on BTC mining in mid-2021, miners have moved their operations to other countries. The United States, Kazakhstan, Russia, Canada, and Iran, among others, are among the places where Bitcoin mining has occurred the most.

China happened to generate just over 70% of global BTC mining before the cryptocurrency ban. Last October, the United States supplanted the Asian giant and took the lead in Bitcoin mining.

Although Chinese miners have already emigrated to different countries with more tolerant mining laws and regulations, the Arcane report considers that the movement of miners will continue through 2022 and many of them will choose countries of Latin America like El Salvador which offer legal and specific guarantees. energy to miners.

According to company analysts, the rapid geographic change of many mining companies shows that although it is a “physical industry, it is highly mobile and the geographic distribution of hashrate can change rapidly.”

Energy consumption will remain a hot topic in 2022

On the other hand, the geographic distribution of mining will not stop either as “Bitcoin’s energy consumption will continue to be a hot topic in 2022, leading some jurisdictions to ban mining from Bitcoin – while other energy-rich jurisdictions embrace the industry, ”the report adds.

Mining flourished for several years in China, as the country provided optimal conditions for industry. Reduced costs of labor, energy resources and equipment maintenance.

When the Chinese government decided to launch its own digital currency (CBDC), everything changed and the persecution began. The miners then had to flee and move their equipment to neighboring countries or to North America where the activity continues to grow. However, since the end of 2019, many were already warned of what was to come.

On the reverse

In addition to El Salvador and Venezuela, Paraguay and Argentina appear on the hashrate map as other countries with potential for growth through BTC mining. Some mining companies such as the Argentinian-owned Canadian Bitfarms Ltd. have won a cheap power deal in that country to produce cryptocurrencies. He plans to set up a gigantic mining farm with 55,000 machines to produce 11,774 Bitcoins.

Why you should care

The volatility of the cryptocurrency hasn’t stopped mining centers from continuing to expand in Latin America, North America, Asia and Europe. As Bitcoin hoarding increases as an instrument of inflation protection, interest in mining is on the rise.

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