China is home to the largest cryptocurrency mining industry in the world, although many other countries are implementing strategies to attract more mining companies. The United States and Canada have been trying to challenge China's global dominance in cryptocurrency mining for five consecutive years.
Data from Cambridge University researchers shows that while China's dominance of the Bitcoin network's hash rate is over 65%, the United States in second place contributes only 7,24%.
The huge and sizable disparity in Bitcoin mining has generated large investments in North America and a few other countries to increase mining operations. One of the main reasons why China is so popular in this industry is the reduction in electricity costs and the availability of more affordable mining equipment as it is also home to the largest producers of crypto mining rigs.
DCG and Foundry to Power Cryptocurrency Mining in North America
Greyscale, the largest crypto asset management and investment firm, is at the forefront of compensating for China's dominance in cryptocurrency mining. Grayscale's parent company, DCG, has invested $ 100 million in its subsidiary Foundry, a cryptocurrency investment firm and staking, to expand Bitcoin's mining infrastructure in North America
Foundry CEO Mike Colyer said the company is looking to build its own mining operations and support other companies with similar interests in the United States and Canada.
Foundry's intention is to partially centralize the Bitcoin network and is speculated to have the support of the United States Congress. In April, the United States Congress presented a bill to support the development of blockchain and cryptocurrencies, including mining, to help the United States remain competitive, especially against China. According to DCG CEO Barry Silbert, Foundry will bring together miners and producers to create a better financial system.
Cryptocurrency mining threatened by China
China has practiced near zero tolerance on cryptocurrencies so far, from banning ICOs in 2017 to shutting down unregulated exchanges. However, Chinese citizens can buy, sell or hold various cryptocurrencies.
The People's Bank of China is also the most globally inclined to design and issue the first Central Bank Digital Currency, which China intends to use to replace the dollar value in the global market.
This makes the fate of miners in China unpredictable, especially after recent regulatory changes in Inner Mongolia that will make the region the most expensive to start mining in China.
And now Sichuan miners are worried that the same legislation is being replicated in that region as well. Former Ripple CEO Chris Larsen warned that Bitcoin's high reliance on Chinese miners is dangerous to US national security and that the US should take steps to counter China's leading role in the ongoing technology wars.
