What is Great Mining Migration?

Between May and June 2021, China banned all mining companies from its territory on the grounds of excessive electricity consumption that would have caused several blackouts in the country, as well as an increase in energy costs due to the enormous amount. request from the farms. The miners were then forced to migrate to more favorable territories defined as Great Mining Migration.

The suspension of Bitcoin mining caused the Hash Rate to halve in July 2021, after exceeding its ATH at over 180 TH / S and abruptly dropping to nearly 80 TH / S in just a few weeks, also causing a weakening of the security of the blockchain. However, the data was fully recovered in the following months and a new Hash Rate ATH was touched, following the start-up of many farms in neighboring Kazakhstan.

But why Kazakhstan? Because it has high availability of energy at a very low cost. This choice is also favored by the cold climate which allows the production systems to cool down earlier. In addition, the government, in favor of welcoming the companies, had planned the taxation of about 0.002 $ for each kW consumed by mining, effectively becoming an income for the country's finances.

But the price of electricity in recent months has increased considerably also in Kazakhstan, becoming a serious social problem that has prompted numerous protests from the population. Therefore it is possible that the miners must further migrate to more favorable territories, exploiting the unused energy for example of South America, abundant in water resources such as rivers and from which it is estimated a high potential of unused energy, and therefore wasted, which it could instead be channeled into mining.

Or the USA where the intense consumption of electricity of the population would not suffer major variations as a result of mining. The American territory has already been chosen by numerous mining companies which could therefore join others.

It remains to be seen whether in the medium or long term even the US will have problems with mining energy consumption, or if they will eventually be able to absorb all the miners fleeing from other countries. The Great Mining Migration could continue for a long time to come.

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