A New US Facility To Overturn Chinese Dominance In Bitcoin Market
In the recent years, China has proven to be a great threat when it comes to systems with capitalistic economy. It also has the largest number of people in terms of population count thus it is considered by a lot of manufacturing companies as an ideal location for their facilities and factories. Aside from its steady growing economy in the world market, the booming country in Asia is also now the dominating force in the Botcoin community.
According to an analysis that was conducted, off all the top Bitcoin mining pools, there is clear evident that companies from China have 51 per cent of the overall hashing power. The 51 per cent is divided by the top three of the mining pools and all of these are Chinese. The network that bitcoin has is decentralized up until this moment and many of the people that are involved in the said community are worried that because of the dominance that the Chinese have they might decide to centralize the mining of the bitcoin. In addition to this concern, there are also issues regarding the plan of China to finally take over what is now known as the leading among all digital currencies.
Mining operation in China is favorable for them because of many reasons including a low labor costs in comparison to other countries. China’s manufacturing industry is also the largest in the world thus it is the most ideal place wherein mining hardware can be manufactured as well for a lower cost. Electricity is also much affordable compared to the ones in developed nation thus bitcoin mining could turn out a great profit in the country.
The continued dominance of the Chinese companies in the bitcoin community is now being challenged by a new venture spearheaded by John McAfee. The company he owns, MGT Capital Investments, will be involved in a new bitcoin mining facility that will be installed in the United States. The said facility will be powered by hydroelectricity and will be located in the Washington state. Operation will start on August 1 and if they have the proper hardware and knows the Bitcoin Network Difficulty Metric, they might just be able to come out on top.