Geopolitical Developments and Crypto Mining
Even if Bitcoin and other cryptocurrencies are a global phenomenon, the distribution for mining centers and mining activities per country could affect the political and economic dimension for cryptos in the global market.
The most dominant country in the mining sector is China due to a number of economic factors that help in mining’s surge. The helping factors for China are the cheap labor cost, easy access to hardware machinery, and affordable power costs.
Other countries seem to promote favorable regulations and conditions for crypto mining are Iran, Canada, Ukraine, and Kazakhstan. The percentage owned from a country from the total hash rate might not produce immediate geopolitical results but in the long-term run, it could be a leverage point for the global financial system in case cryptos have a more active role in the global economy.
In any case, mining centers and power could be a sustainable geopolitical strategy for impactful results in the future.