Grayscale Investments: Bitcoin mining is shifting from China to the United States and Canada

Original title: "Institution: The main force of Bitcoin "mining" is shifting from China to the United States and Canada"

Original source: IT Home

On February 12, according to foreign media reports, on Tuesday local time, Grayscale Investments, the world's largest cryptocurrency asset management company, said that Bitcoin production is shifting from China, which dominates cryptocurrency mining, to North America.

Barry Silbert, founder of New York-based Grayscale Investments, made the analysis in an online presentation to investors, but he did not explain why the shift was happening.

Many mainstream investors, such as pension funds or asset managers, have been reluctant to embrace Bitcoin, concerned about volatility, security vulnerabilities and a lack of transparency in the cryptocurrency market.

But Bitcoin has been popular with enthusiasts and retail investors since it emerged more than a decade ago, and has also attracted growing interest from hedge funds and trading firms, many of whom are attracted by its promise of high returns in today's era of low interest rates.

A study last year estimated that Chinese bitcoin miners control about two-thirds of the global cryptocurrency network's mining activity. This dominance enables Chinese bitcoin miners to produce more bitcoins, which undoubtedly also drives demand for bitcoin mining equipment in the Chinese market.

“What I’ve seen recently, maybe in the last three to six months, is a real shift that’s happening is that a lot of the bitcoin mining activity is trying to move outside of China to the U.S. and Canada,” Silbert said.

Bitcoin prices have rebounded again in recent days. On Tuesday, the price of Bitcoin rose to $10,300. Profitable Bitcoin mining often takes place in cold climates or sparsely populated areas, such as Scandinavia and Quebec.

Grayscale Investments, which manages about $3.1 billion in cryptocurrency assets, has been working to attract larger investors to buy digital crypto coins. The company said last month that it had become the first digital currency investment vehicle to receive reporting company status from the U.S. Securities and Exchange Commission. This status makes its cryptocurrency products subject to the same reporting standards as products traded on major exchanges.

Original URL: https://www.ithome.com/0/472/739.htm