Malaysia is ranked alongside Russia, Kazakhstan and Iran as the most popular spot for Bitcoin mining, just behind China and the US.
The Wall Street Journal ( WSJ), reported Wednesday that the US is rapidly becoming the global hub for Bitcoin mining.
According to the report, many miners now believe that they will have reliable access and more predictable regulation in the US after China’s crackdown.
It cited data from the University of Cambridge that showed that more than a third of global computing power used to mine bitcoins is now drawn from machines located in the United States.
China was once the most popular country to host computers in order to unlock new bitcoin.
However, the country announced in May that it would be stepping up its crackdown on bitcoin mining and trading. This is to ensure government control over the country’s economy.
WSJsaid that bitcoin mining is a profitable venture with one bitcoin currently valued at about US$60,000
In order to harvest new bitcoins, computers with powerful computing power, which are available online 24/7, must solve a series math puzzles in order to unlock new coins.
According to the report, bitcoin’s network releases new cryptocurrency only every 10 minutes by design. The number of coins that it releases will decrease in the future.
The competition to unlock bitcoin is therefore energy-intensive. This is because there are only two ways to increase your chances of winning: put more machines online.
Miners will eventually go where there is cheap energy and a predictable regulatory environment.
WSJ said that China’s promise to provide cheap coal-fired electricity made it a great place for crypto miners.
The country was responsible for nearly half the world’s computing power used to Bitcoin mining before the ban.
The US, however, has its own regulations.
The Securities and Exchange Commission chairman Gary Gensler has taken a firm stance against the cryptocurrency market.
Gensler questioned whether coin exchanges and coin issuers are violating investor protection rules.