The world of Bitcoin mining has seen some big changes throughout the years. Hardware has evolved, as has the software used to optimize this hardware for mining purposes. The regions where Bitcoin and altcoin mining have boomed are also about to change in the near future. A lot of mining operations currently reside in China, but the government is cracking down on this type of activity. As a result, we may see a lot of companies move to India in the near future.
Where Lies the Future of Cryptocurrency Mining?
As most people are aware by now, there are certain prerequisites to make cryptocurrency mining profitable. First of all, one needs enough capital to set up an operation powerful enough to generate a substantial amount of currency. Secondly, you need a location to put all that hardware, preferably one where a lot of cool air can be found. Last but not least, you need access to cheap electricity to keep the overhead costs as low as possible. Ensuring all three of these boxes can be checked off has proven to be very difficult these past few years.
As a result, we saw a lot of companies set up shop in China. Although the Chinese government has never been favorable to cryptocurrencies, they did acknowledge that the mining industry would be an intriguing revenue stream. It turns out that this positive attitude has changed as well, with mining companies being asked to leave the country as soon as possible. Whether or not this is due to concerns over the impact of mining on the electrical grid remains a big question. Either way, it’s clear that companies need to look for other locations in which to mine cryptocurrency.
The big question, then, becomes which locations would be best. For a lot of smaller companies, the options are rather limited right now. It seems India is currently of great interest in regards to cryptocurrency mining, even though the country’s government isn’t too keen on Bitcoin and altcoins. For now, there is no official cryptocurrency regulation in India, which makes it more appealing to the world’s mining operators. There’s also cheaper electricity and plenty of room to set up hardware.
However, it remains to be seen how the Indian government will decide to handle cryptocurrency mining in the near future. Industry experts are confident a positive form of regulation will be drafted, but the reality may turn out to be very different. India has an abundance of cheap electricity, almost on the same level as China. In some regions, the costs may be even slightly lower than China’s. However, if the power grid were to be taxed too much, India may shut the door on cryptocurrency mining as well.
At the same time, the Indian government will have to acknowledge there is an exciting opportunity ahead. More specifically, cryptocurrency mining could generate a lot of revenue for the country and make India more appealing to other technology firms as well. It is doubtful the Indian government will grant cryptocurrency mining operators special rebates or discounts, but no one knows that for sure. Nobody should expect all Chinese miners to move to India all of a sudden, though.
One thing to keep in mind is that India may very well be the “last option” for a lot of cryptocurrency miners. Finding cheap electricity is not as easy these days as one would expect. In fact, a lot of companies may be put out of business if both China and India are no longer viable options. Only time will tell what the future holds in this regard, but right now, things are not looking all that great. A lot of countries will continue to oppose everything related to Bitcoin and altcoins, including the mining aspect.