When cryptocurrencies first started hitting the mainstream, very few countries wanted to associate with this new type of asset. Due to its reputation at the time, people considered it to be nothing but a currency for criminals to use on the internet.
However, during this time, China proved to be an essential asset to the crypto market at the time. They allowed a multitude of crypto mining companies to set up shop, which allowed the market to grow exponentially. And thanks to the cheaper price of electricity, plenty of space for expansion, and talented developers, it truly was a goldmine for the crypto market at the time. Businesses became staples of the market thanks to the lax laws in the country, which all came to a stop when the country banned them recently.
As of late, China has started their crusade against cryptocurrencies, where they started to ban cryptocurrencies and everything that related to it. The ban came as a surprise to many businesses in the country, which quickly had to find a different country to move into. They needed to find a country that offered just enough space and talent, but more importantly, also offered cheaper electricity.
Electricity also happened to be the main concern for China when it came to crypto mining, which is why they went on to ban cryptocurrencies as a whole. And in response, companies had to migrate in the thousands to different countries like the US and Singapore. For many, the top choice became Russia and Canada. These new mining havens proved to be instrumental in getting the crypto market back on track.
Russia alone contributes to the 11.2% hash rate of Bitcoin, which is currently the third largest in the entire world. The United States jumped to number 1 with a hash rate of 35%. The major reason why most of the crypto mining companies out of China chose these countries is because of their cheaper electricity. Some companies have even gotten together to build a massive plant in Texas, which rivals the electricity prices of China by a fair degree and offers better expansion plans. It also helps that the US has also started to accept cryptocurrencies, as a multitude of banks and institutions start accepting cryptocurrencies as well.
Russia and Canada are especially popular choices, given the sustainable weather conditions. Since these countries can get very cold during the winters, it can counteract the immense heat that mining machines can produce when they are cracking.
Despite its very obvious effort to stifle the growth of the crypto market, there are reports that China is looking to bring back these mining companies by rescinding their original ban on cryptocurrencies.