A major relocation could actually do Bitcoin well, as major miners are now leaving China after the country cracked down on Bitcoin mining. Mike Novogratz, CEO of Galaxy Digital, has joined other experts and calls migration to other parts of the world a possible positive development.
Novogratz mentioned on Bloomberg that China’s crackdown on pretty much everything, like banning mining, banning leverage, and in some places even banning Bitcoin, didn’t really affect Bitcoin. “It still exists, it survived,” said Novogratz. He even said that the migration of miners from China could be “a great net positive for the ecosystem.”
Novogratz even described the crypto ecosystem as a robust system overall. In it, he was probably referring to the recent 65% decline in Bitcoin’s price, but at the same time the coin did not plummet below the $ 25,000 mark. “We had a crash, we didn’t have a diving protection team. We didn’t have any complaints. The system worked as it should. It is a very robust system that was built in a short time. “
Novogratz also believes that Bitcoin has established itself as digital gold. He reminded the audience that gold has existed for 3,000 years. He expressed his unwavering confidence in Bitcoin by saying, “I expect Bitcoin to be the digital version of gold for the next 3,000 years.”
Bitcoin mining in and of itself is an energy-intensive process and so far has largely been carried out from Chinese territories. China has long been home to half of the world’s bitcoin miners. Now that Beijing wants them out, many of them could move to Kazakhstan, which has cheap electricity and a crypto-friendly government.
But it seems more interesting that Texas could become the new epicenter for Bitcoin mining, a real game changer for the region, as Shenzen-based company BIT Mining plans to invest $ 26 million in a 57-megawatt data center there . Texas could also be an ideal destination for miners thanks to its abundance of solar and wind power, its unregulated market, and its crypto-friendly political outlook. Texas has some of the lowest energy prices in the world, and its share of renewable energy is only growing over time.
Cleaner, greener bitcoin mining could be a good reason for large companies to invest in bitcoin going forward, which could increase its value.