Argentina and Venezuela stand out for Latin America on the Bitcoin mining map

17/12/2019

Provinces and cities in China, the United States or Russia dominate the Bitcoin mining map. Argentina and Venezuela appear among the mining groups that obtain 4% of global profits.

Peru is the country most affected by crypto mining in Latin America. Image: Indiana University
Peru is the country most affected by crypto mining in Latin America. Image: Indiana University

In a market dominated by Chinese provinces and some cities in the United States, Canada or Russia, there are two Latin American countries that stand out. These are Argentina and Venezuela, which appear on the map of regions with mining activity in the Bitcoin network. This is reflected in the December edition of the biannual report presented by CoinShares, published earlier this month.

The document, titled Mining Whitepaper December 2019, highlights that the regions with the highest incidence of Bitcoin mining tend to be technologically advanced and relatively sparsely populated. In particular, they are "mountainous areas or areas crossed by powerful rivers," it is said.

The text mentions the two South American countries as "minor regions" on the Bitcoin mining map. In fact, it refers to these as well as to Belgium, Belarus, and some entities in the United States and Australia, as exceptions to the geographical conditions in which mining complexes are usually erected.

In general, the report considers that "the Bitcoin miners are fairly well distributed around the globe". Although beyond that distribution, most of the large mining centers are located in areas with climatic conditions such as those referred to above.

This affirmation of the CoinShares report is ratified by the conclusion of the World Mining Conference 2019, held last October.

At that meeting, some of the world's major mining farms shed light on their preferences for locating equipment in a specific region. In addition to electricity costs, preferences tend to include cold and dry climates. Preferred regions with these conditions include Kazakhstan, Russia, Iceland, and Canada. In the latter country, it is precisely the most popular farm, according to the results of the meeting.

Global distribution of Bitcoin mining

Despite considering that there is a relatively widespread distribution of Bitcoin's mining power, the CoinShares study exposes that only the Chinese Sichuan region has more than 50% of the network's profits. Specifically, Sichuan gets 54%, the report reveals.

According to the document, another 31% is for "non-relevant Chinese regions". This category includes centers located in the United States, Canada, Russia, Iceland, or countries in Northern Europe.

Russia is home to one of the largest farms in the world. It is Bitriver, located near the Bratsk hydroelectric power plant, a city in the Russian Siberian region. This company is not directly engaged in mining, but functions as a data center providing access to mining equipment and technical service.

The list is completed by other areas of China, with 11%; and the "rest of the world" with only 4%, according to the CoinShares report. This last group includes Venezuela and Argentina as the only outstanding countries in Latin America. Australia, Belarus or Wales also belong to this group. Africa is the only continent not represented, according to the analysis firm.

Source: Criptonoticias