A North American Story
How the rise of American hashrate dominance will mirror that of American crude production in the 2010s.
In 2018, the EIA declared the United States as the global leader in crude production. Sometime this decade we expect to see the same but for hashrate. This is driven both by increased domestic investment in mining, but also by a decrease abroad.
The shale boom in the early 2010s saw an explosion in domestic drilling while other oil producing nations slowed. A decade later, a more dramatic shift has happened in the world of Bitcoin mining.
Hashrate by country just before Chinese mining collapse. Source: Cambridge
China, like OPEC, dominated and defined the global mining industry for years. Since 2018 mining had slowly been increasing abroad, but a sudden expulsion of miners by the Chinese govt this past spring turned this leak into a cascading waterfall.
To draw a comparison, imagine that OPEC suddenly stopped producing oil while domestic investment in O&G skyrocketed.
Continuing with the oil & gas analogy — what does that mean for US producers?
It means domestic energy producers have a once-in-a-generation opportunity to take advantage of this massive transition in global hashrate production.
The future of Bitcoin mining is a North American one.
-Charlie Spears, Strategy @ Nakamotor
Research drops this week —
Galaxy Digital Venture Capital report
Hashrate Index collates all Bitcoin mining stocks.
Surprising media takes —
Forbes “To Invest in Carbon Neutral Bitcoin Mining is to Invest in Women”
Elizabeth Warren wants to regulate crypto.