Bitcoin Thrives Despite China’s Ban, Now More “Green” and Globally Dispersed
Two years after China‘s crackdown on Bitcoin mining, the cryptocurrency is demonstrating resilience. The ban forced miners to disperse globally, and the shift in geographical focus has had multiple unintended benefits. Now, Foundry, based in the United States, has become the world’s largest Bitcoin mining pool. according to forbes.
Remarkably, the move from China to the United States has also made Bitcoin more environmentally friendly. Jurica Bulovic, the Head of Mining at US-based Foundry, revealed that 71% of the pool’s energy consumption comes from green or ESG-friendly sources. This switch to cleaner energy is in stark contrast to China’s coal-heavy power mix.
Alongside Foundry, Riot, another US-based company, is actively looking to expand large-scale Bitcoin mining in the country. With corporate leaders primarily based in North America, the Bitcoin mining industry is gaining momentum in jurisdictions more open to its development. Consequently, the hash rate, the computing power used to secure Bitcoin, has doubled from 2022 to 2023.
Critics had long claimed that Bitcoin was overly dependent on China for its mining operations. This narrative has been shattered as miners adapt to new environments. In fact, the shift has opened doors for increased institutional interest in Bitcoin and innovative customer service practices in mining pools like Foundry.
Moreover, the data shows that geographic diversity has made Bitcoin stronger. While critics argued that Bitcoin’s concentrated geography was a vulnerability, the cryptocurrency has proven its ability to adapt and even thrive in adversity. What didn’t kill Bitcoin has indeed made it stronger, and as China pulls back, the United States is stepping in to fill the void.
It’s clear that Bitcoin’s fundamentals are robust enough to withstand significant geopolitical shifts. By successfully diversifying its geographical and energy profile, Bitcoin is not just surviving but setting new benchmarks for resilience and adaptability. As miners continue to innovate and adapt, the future of Bitcoin seems brighter and greener than ever.
