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Hashing power could migrate from east to west if the global mining landscape changes

May 30, 2020

Talk to Cointelegraph Adam Traidman, CEO of Ripple SBI Asia, predicted that the hash rate in the mining industry would continue to move from east to west, claiming that the transition was already beginning to be observed.

“We see great interest [de] [mineros chinos ricos que están pagando en promedio aproximadamente USD 0.03 a USD 0.05 por kilovatio-hora […] in Texas at $ 0.025 and below, in some cases well below, “said Traidman.

Tensions between American and Chinese miners

However, the head of Ripple SBI Asia found that Texas-China mining companies’ relationships had deteriorated in the past, and said:

“”One of the problems is that the good old Texas boys sometimes have a bad taste in their mouths when they work with some companies abroadbased on some initial attempts that didn’t work well for various business reasons. So there is a bit of fear, which is interesting. But money beats all of this, and I think you’ll see a huge influx in the United States over the next three years. “

Hashing power could migrate from east to west if the global mining landscape changesHashing power could migrate from east to west if the global mining landscape changes

Traidman also highlighted the impact Trump’s tariffs had on China in talks between Chinese and American mining companies:

“The other thing that slows him down is Trump’s tariffs on China. It really hurts things at the moment. Once they get up, it will be like this ‘boom’, a huge acceleration.”said.

Despite the emphasis on the impending migration of the east-west hash rate, Traidman found that at that time, “most major mining hardware vendors” […] Over 90% of their customers’ shipments are still in China. “

Europe is excluded from industrial mining

While noticing that Europe had previously attracted many of the major players in the mining industry, Traidman said that high operating costs have since deterred miners from much of the region.

“It turns out that with oil and coal reserves and everything and wind power and Texas and those things, tons of excess energy, you’d think Europe could be more like this to the United States. But for some reason, energy prices are just higher. “

Traidman suggests that Europe’s excessive operating costs could be the result of a deliberate strategy to limit the sector’s presence in the regionnoting that many jurisdictions may not want “these super inefficient, energy hungry, and possibly not environmentally friendly companies in [sus] Backyards. “