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- 1 The United States serves as the hub for crypto mining operations currently.
- 2 Some reports suggest crypto mining operations are still very much dependent on fossil fuels.
A crypto mining firm has set up its headquarters in Akron, a city in Ohio. The company was reportedly operating the biggest data center in China. According to Akron Beacon Journal, a morning newspaper in Ohio State, the facility can consume enough power to run 63,000 homes.
Hindered by The Government
BIT Mining, the company in focus, is operating near Maxion Wheel and Goodyear manufacturing plants in the region with thousands of crypto mining rigs at their disposal. It is unclear exactly how many machines they are running in the facility. Their Hong Kong subsidiary is operating 7,920 devices, providing a glimpse of their scale of operations.
The Akron Beacon Journal quotes Bo Yu, CEO of BIT Mining, “Our company has twice built incredibly successful businesses which have been halted by governmental regulations, so we are no stranger to reinventing ourselves.” Profitability in crypto mining is an appealing factor that draws billions of dollars from investors globally.
Currently, the United States serves as the hub for crypto mining operations, around 40 percent of the global hash rate is generated there. China once claimed this crown, accounting for nearly 70 percent of the hash rate before the nation put a blanket ban on all crypto activities.
Complaints associated with crypto mining have been rising globally, especially in the US. Recently, activists in Navarro County, Texas, called out to Riot Platforms, the biggest crypto-miner in the US, for its upcoming 1 GW Bitcoin (BTC) mining facility. They speculate that it may threaten its natural resources in the region.
The process is deemed harmful to the environment given its energy intensity. Data shows that a BTC transaction is equal to almost 500K Visa transactions. Moreover, annual energy consumption by the virtual currency can run a whole nation like Switzerland. Researchers also discovered in some studies that its environmental footprint can go beyond air pollution.
In a study conducted by the United Nations, an intergovernmental organization, its land and water footprint appeared detrimental. Current Bitcoin operations cover a landmass 1.4 times the area of Los Angeles (LA) and consume water that may quench the thirst of 300 Million people in the Sub-Saharan region.
Another report supports the aquatic part. A study dubbed “Bitcoin’s growing water footprint” highlights that Bitcoin’s footprint reaches around 1,600 gigaliters. A majority of it is consumed in Kazakhstan. The nation is among the top crypto mining destinations with coal being at the center of energy production in the country.
Some reports suggest crypto mining operations are still very much dependent on fossil fuels. This is among the reasons regulators have put the sector under heavy scrutiny, another being extreme price fluctuations. To this date, no country except for El Salvador and the Central African Republic has come up with proper regulations for crypto. Both the mentioned countries have accepted Bitcoin as their legal tender in their regions.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
