Taras Kulyk, Senior Vice President for Blockchain Business Development at Core Scientific, says that countries trying to become leaders in the blockchain space differ greatly in what they can offer cryptocurrency miners.
Kulyk explained this during an interview with Cointelegraph The global diversification of the hashrate has increased Countries around the world are competing for control of the cryptocurrency mining industry.
Kulyk thinks so China has been a desirable center for cryptocurrency mining because of specific factors it enjoys. In particular, the low labor costs, access to units and decreased energy costs during the rainy season, but clarified:
“A key economic problem driving the recent raids on the authorities is the theft of power, which local politicians then have to suppress. Another important economic problem that creates regulatory uncertainty is capital control problems. Both have made the current regulatory environment in China unsafe for digital mining companies. “
Agitation at the highest political level in a country or jurisdiction is likely will result in existing operators reducing planned investments or, worse still, shutting down and relocating, Kulyk says.
He noticed that crypto mining “It is extremely capital intensive, which means that operators need stability over long periods of time to ensure that the capital they invest is recovered and has an ROI.”. He also warned of political unrest “They can disrupt this much-needed stability.”
Kulyk pointed out how New regulations have affected certain competitors from countries like Iran, Ukraine, Canada and Kazakhstan:
“Overall, we see the regulatory burden on digital mining easing as it is increasingly seen as a way to revive dying industry assets to be useful in the Tech 2.0 economy. Governments resort to their regulatory policies and make their policies cheaper, especially for mining, in order to gain competitive advantages over other players in the mining industry.
How Regular clarity arises in cryptocurrency mining. Kulyk thinks so “We will continue to see institutional investors allocate portfolio space to market leaders.” and came to the conclusion that:
“The stronger the leadership team and the transparency around ownership and operations, the more likely a company is to be a target for investors looking to get involved in digital mining.”