There are other countries that want to have a say in the crypto mining space.
Taras Kulyk who works at Core Scientific has discovered that there are other countries like China that want to be leaders in the crypto mining space but the benefits they can give are not the same.
Kulyk, while speaking with Cointelegraph, mentioned that more countries have been beefed up their mining activities so that they can also have an impact in the crypto mining industry.
Kulyk agreed that China has some factors such as cheap electricity and labor that attract crypto miners and that is why it has been a hot spot for crypto mining. According to Kulyk:
“One key economic concern driving recent crackdowns by authorities is theft of power which local politicians then have to clamp down. Another key economic concern driving regulatory uncertainty is capital control issues. Both of these have made the current regulatory environment in China uncertain for digital mining companies.”
Kulyk says countries that want to have a leadership position in the crypto mining industry must have a good government and provide favorable factors or else, the miners will find somewhere else to settle.
He said that countries that maintain their offers to crypto miners will retain them more than others that change their policies from time to time. This is because miners spend a lot of money to start the business so they wouldn’t want anything to disrupt their business plan.
Kulyk remembered that in some countries, policies were adjusted to invite crypto miners:
“Generally, we’re seeing the regulatory burden for digital mining easing off, as it’s increasingly viewed as a way to reinvigorate sunset industry assets into being useful in the technology 2.0 economy. Governments are turning to their regulatory policy, particularly making their policy more favorable to mining, in order to gain competitive advantages over other players in the mining industry.”
Kulyk believes that no particular country has the monopoly of directing crypto miners to itself. He says the best way to stay on the top of this is by providing a friendly environment and regulations that won’t hurt.
Similarly, companies that mine cryptocurrency have to be investor-friendly in order to gain them:
“The stronger the leadership team and transparency around ownership and operations, the more likely a company will be a target for investors who are looking to get involved with digital mining.”