Back in the early days of Bitcoin mining, circa 2009, almost anybody that wanted to get their hands on it could use their CPU and accumulate a decent number without breaking the bank on hardware. By 2011 things had significantly ramped up with miners dedicating dozens of computers or stacking GPUs in warehouses. This is pale in comparison with where Bitcoin mining is today with roughly 128.84 terrawatt-hour's worth of energy per year. The industry has attracted so much competition that mining companies like Cipher and Genesis Mining have been valuated in the billions. In 2021 entire countries are gearing up to enter the foray of the hash rate arms race. China, although the government is not directly behind it, is responsible for 65% of Bitcoin mining worldwide. This is actually causing problems for regional authorities with the 'Inner Mongolia' set to ban mining in the region to save power. In comparison the USA is only responsible for 7.2% of BTC mining.
Pakistan's move
Pakistani is planning to build mining farms and particularly, in the Khyber Pakhtunkhwa province, plans for two hydroelectric-powered farms are underway. Speculation is rife that this latest FOMO into the crypto sphere by state powers is fuelled by the latest rallies which saw 2017's ATH more than tripled. Despite the fact that 'Bank of Pakistan' claimed that Bitcoin was not legal tender back in 2018, cryptocurrency has been fast moving in 3rd world countries which could see massive investment/returns from the industry.
Iceland's move
As previously mentioned Genesis Mining is one of the biggest mining companies in the world. They run Enigma which is a mining facility launched in 2014, 10,000s of GPUs make up its arsenal. Despite the fact that Iceland is not a 3rd world country it has attracted a significant bulk of the crypto industry since their conception. Apparently in 2016, 0.9% of Iceland's GDP came from cryptocurrency mining facilities. These facilities actually consume more electricity than all of the country's domestic electricity use combined.
Iran's move
Earlier this year it was reported that the Iranian government seized 45,000 ASIC mining machines from illegal cryptocurrency farms. Apparently they had been benefiting from state subsidized electricity to increase their profit margins. Authorities claimed that they were running at 95 megawatts of electricity per hour and that within the month of January alone they had also shut down 1,620 illegal mining facilities. It is thought that rogue states like Iran and North Korea are actually using cryptocurrencies and mining to evade financial sanctions. This leads many to believe that these machines will probably be incorporated into state sponsored mining businesses.
What do you think the future of the Bitcoin/Crypto mining industry looks like?
