Will the United States lose the throne of Bitcoin mining? This country wants to fight

Key facts:

  • Laos makes plans to become the new paradise of digital miners.
  • Canada, Kazakhstan and Russia also strengthen their bases for cryptocurrency mining.

Now that the United States concentrates more than a third of Bitcoin mining in the world, after the veto that China imposed on the activity, another Asian country is determined to enter the race for the dominance of the mining power or hash rate (hash rate). This is Laos, located, between Thailand and Vietnam, whose government recently authorized the trading and mining of cryptocurrencies.

The Lao government hopes that Bitcoin mining will replenish state coffers and allow it to fund “priority programs.” He estimates that his pilot digital mining plan will yield profits in the order of USD 190 million in 2022,as noted by Finance Minister Bounchom Ubonpaseuth during the presentation of the plan in the National Assembly.

The plan itself is that, with the mining of bitcoin and other cryptocurrencies, as a source of income, the country will increase the resources projected for next year by 20% compared to the goal set for 2021. It means that its funds will amount to approximately USD 2.8 billion in 2022, according to the media of that country.

These additional resources will be used to cover the living expenses of the staff and personnel of the security force. In addition to addressing the magnitude of health expenses to contain the Covid-19 pandemic, as indicated by media reports.

The small territory of Laos hopes that Bitcoin mining will allow it to get quick money to cover government commitments. 

As reported by Cryptolafinance last September, the Lao government authorized six companies to start mining and trading operations of Bitcoin and other cryptocurrencies in the country. Since then, a group of regional technology and finance banks and regulators are now working together to draft legislation related to mining and trading crypto assets.

Will Laos compete with the United States for dominance of bitcoin mining?

After China’s recent crackdown on digital mining and bitcoin trading, a small country like Laos has now seen the opportunity to earn revenue by opening the doors to cryptocurrency mining.

Laos boasts the abundant hydroelectric power of its Mekong River and is now the only southeast Asian country that officially allows and participates in cryptocurrency mining. However, it remains to be discovered whether this small nation with just 7 million inhabitants, can become the new paradise for miners.

Will Laos be able to compete with the United States in the race to see which country concentrates the most Bitcoin mining power? It may take us some time to figure out the answer, if we take into account that this Southeast Asian country is just taking its first steps, while the United States is already walking with greater ease when it comes to Bitcoin mining.

While digital mining is now allowed in Texas, South Dakota, Nebraska, North Carolina, Ohio, Pennsylvania and other US states, there are also other countries that are determined to compete for the throne of mining power. This is because the miners who have left China, have moved to Canada, Kazakhstan, Russia and other places that have a favorable climate and energy for mining.

Meanwhile, only six companies will start operations in Laos and doing so involves the construction and operation of huge facilities equipped for the installation of hundreds of ASIC miners for cryptocurrency mining.

To achieve this, the country may have to convene foreign experts, who would have to arrive to build, operate, repair, clean and test the mining centers located within department stores linked to hydroelectric power plants.

Unfortunately for Laos, the weather is often hot, which complicates the cooling of mining equipment which, in turn, generates heat. Although on the positive side is its cheap hydroelectric power. Therefore, it will be time that will determine how Bitcoin mining and cryptocurrency trading evolves in Laos.

Donald M. Ashe

I am Donald M. Ashe, Understanding your needs as a Professional and high-end copywriter, we have developed a full and extensive essay to assist you, as the Online Business Editor.

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