Following China’s announcement on a repression of cryptocurrency mining which sent the price of bitcoin into a decline and caught miners off guard, in May, cryptocurrency miners have moved to neighbouring countries, especially, Texas, which is becoming the next global cryptocurrency capital.
China was home to around 70% of global bitcoin mining power, until the clampdown. Many Chinese bitcoin companies have looked to Texas and neighbouring countries for stability and opportunity. Beijing-based Bitmain is expanding its facility in Rockdale, Texas.
CEO of Chinese cryptocurrency mining company, Poolin, the second largest bitcoin mining network in the world, Kevin Pan, got on a flight the next day after the announcement to leave the country. To him, Texas felt like home almost instantly and despite the costly and time-consuming efforts, Mr Pan says his company is committed to settle in Texas, saying, it is a free land and a lot of bitcoiners are there, hence the feeling of a family reunion.”
Experts believe China’s bitcoin crackdown was motivated by having greater control over the financial markets.
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