Why big miners are moving to new regions?

[KincaidT]

I've been noticing how the mining world's changing lately. With electricity getting pricier in place like North America and Europe, the big mining crews are packing up and heading to spots with cheap, green power. I heard some areas are offering juice for under $0.06/kwh. It's low enough that even smaller folks like me could still make a buck. New mining setups are popping up there too, all slick and budget friendly. Makes me wonder if this shift's gonna totally flip how crypto mining works down the road–what do you think?

[memehunter]

I heard some areas are offering juice for under $0.06/kwh.

Even with those rates, it is hard to be profitable overall. How would you pay rent/salaries/maintenance? Anything below a few hundred thousand bucks is not profitable, it is way better to hold on to BTC why take double the stress? I am not discouraging you and perhaps you possess all the skills to operate a mining rig, I am just highlighting the importance of knowledge and skills.   

[Charles-Tim]

This lists still says otherwise:

https://worldpopulationreview.com/country-rankings/bitcoin-mining-by-country

Many countries there are well developed countries while United States is still the country with the highest bitcoin miners.

On the list are also many other well developed countries.

[BlockSavvy]

I've been noticing how the mining world's changing lately. With electricity getting pricier in place like North America and Europe, the big mining crews are packing up and heading to spots with cheap, green power. I heard some areas are offering juice for under $0.06/kwh. It's low enough that even smaller folks like me could still make a buck. New mining setups are popping up there too, all slick and budget friendly. Makes me wonder if this shift's gonna totally flip how crypto mining works down the road–what do you think?

I've noticed mining's moving to spots with cheaper, greener power, places where electricity's under $0.06/kwh. It's cool because it's opening doors for smaller miners. I feel like this could shake up the whole industry and spread things out more. To keep up, I'm thinking about hunting for low cost power or tweaking my setup to run leaner. Are you planning to move yours or switch things up too?

[yhiaali3]

It's only natural for mining companies to move to areas with low electricity capacity, as electricity is a key factor affecting mining profitability. Therefore, all companies will seek to reduce their costs and increase their profitability.

But I don't know why this will completely change the way cryptocurrency mining works. I don't expect it to change anything, and most major companies are still based in the United States and other major industrialized countries, which provide a more suitable operating environment. Therefore, I don't think anything will change in the near term.

[joniboini]

What kind of world-changing events do you expect to happen? I mean it's just how the market works. I believe we have had similar discussions in the past about green energy and its effect on mining. Maybe we'll find new blocks faster because miners set up more rigs, but the difficulty will be adjusted as usual so it will say more or less the same. Are you afraid that the mining power will concentrate around companies that can acquire most of these energy sources? But that's the risk regardless of whether using green energy or not. CMIIW.

[robelneo]

Makes me wonder if this shift's gonna totally flip how crypto mining works down the road–what do you think?

One example is Chinese companies moving to Ethiopia because of the very low electricity costs. It's common sense that mining depends so much on electricity costs, and mining companies will look for a country that offers the lowest cost, and Ethiopia is a great place to be. I wonder why the Ethiopian government did not think of setting their own crypto mining with the lower costs they can mine and make Bitcoin and other cryptocurrency part of their reserves.

[Crypto Library]

I've been noticing how the mining world's changing lately. With electricity getting pricier in place like North America and Europe, the big mining crews are packing up and heading to spots with cheap, green power. I heard some areas are offering juice for under $0.06/kwh. It's low enough that even smaller folks like me could still make a buck. New mining setups are popping up there too, all slick and budget friendly. Makes me wonder if this shift's gonna totally flip how crypto mining works down the road–what do you think?

Actually, in the case of Bitcoin mining, Satoshi Nakamoto's algorithm has been set in such a way that the difficulty of mining will increase as time goes by.
And accordingly, the lower the mining cost, the higher the profit of miners or they will not face losses. And that is why most miners are always shifting themselves to places where electricity bills are lower for them and some big mining farms are relying on newly generated sources for electricity. I don't think there is any rocket science here that we can't understand.

[Stompix]

I've been noticing how the mining world's changing lately. With electricity getting pricier in place like North America and Europe, the big mining crews are packing up and heading to spots with cheap, green power. I heard some areas are offering juice for under $0.06/kwh.

Nobody is going anywhere for 0.06/kwh stop spreading your lies.

Core, Riot , Mara all have average costs in the US of 4 cents, no American company will lave the safety of the US, and stale contracts settled for years to go in a country that has a civil war every decade.

For certain the only company that says that is the scam company oneminers, a scam company with fake pictures and fake stories.

Actually, in the case of Bitcoin mining, Satoshi Nakamoto's algorithm has been set in such a way that the difficulty of mining will increase as time goes by.

This is completely false, I can't even picture where you got that from.

[memehunter]

I wonder why the Ethiopian government did not think of setting their own crypto mining with the lower costs they can mine and make Bitcoin and other cryptocurrency part of their reserves.

Are you suggesting a BTC mining FOMO among nations . IMHO will be bad for BTC if governments start mining BTC. However the government should encourage and make feasible environment for miners.

[Rruchi man]

what do you think?

I am worried for them, and hoping that things don't change suddenly or as they finally get to settle down, because it can, and if it does, will be greatly distabilizing. These areas offering cheap electricity are obviously using it as an incentive to attract people there. Immediately they meet the threshold of individuals they can accommodate, it is very possible that they readjust the cost of power.

[Zed0X]

~
Immediately they meet the threshold of individuals they can accommodate, it is very possible that they readjust the cost of power.

That is up to the company to determine on their own. Maybe they can have exclusive contracts with the government before they move there like having a cap on the increase. Anyway, things could get worse if, after a few years, there will be change in leadership or if their power situation worsens. They can blame mining and call for a ban.

[TomPluz]

Makes me wonder if this shift's gonna totally flip how crypto mining works down the road–what do you think?

I don't get it how miners moving to places where power rates are a lot better can "flip" the crypto mining industry...maybe if you are referring to them moving to new places as flipping then maybe it is. Mining is a business and they would naturally go where they can be able to produce more profits and as long as they are welcomed to do business. And I am seeing nothing dramatic with that...and in fact I would say this is good because if miners are not doing well they would surely stop what they are doing which is not good overall for the cryptocurrency industry.

[Aanuoluwatofunmi]

The major challenges concerning this is the government regulations, which may includes taxes they pay, the supply of electricity and a crypto friendly environment that enables for the mining they do, you can agree with me that there are situations that may be unconducive for the establishment of a mining rig, this could be a location barrier or from the above mentioned related challenges, on why a mining rig or miners should relocate for to a better environment.

[omori]

~
Immediately they meet the threshold of individuals they can accommodate, it is very possible that they readjust the cost of power.

That is up to the company to determine on their own. Maybe they can have exclusive contracts with the government before they move there like having a cap on the increase. Anyway, things could get worse if, after a few years, there will be change in leadership or if their power situation worsens. They can blame mining and call for a ban.

The company is led by the profit.

So if it won't be good for them in the long run, sure thing, they will leave or blame anyone but themselves for it.