Laos makes plans to become the new paradise for digital miners.
Canada, Kazakhstan, and Russia are also strengthening their bases for mining cryptocurrencies.
Now that the United States concentrates more than a third of the mining of Bitcoin in the world, after the veto that China imposed on the activity, another Asian country is determined to enter the race for 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 believes that his digital mining pilot plan will it will yield profits in the order of USD 190 million in 2022, as pointed out by the 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 increases 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 detail the media of that country.
These additional resources will be used to cover the living expenses of the officials and personnel of the security force. In addition to addressing the magnitude of health expenditures to contain the Covid-19 pandemic, as indicated by media reports.
As reported by CriptoNoticias last September, the government of Laos Authorized Six Companies to Start Bitcoin Mining and Trading Operations and other cryptocurrencies in the country. Since then, a group of banks and regional finance and technology regulators are now working together to draft legislation related to crypto-asset mining and trading.
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 an opportunity to earn income opening the doors to cryptocurrency mining.
Laos has abundant hydroelectric power from its Mekong River and It is now the only country in Southeast Asia that officially allows and participates in the mining of cryptocurrencies. However, it remains to be discovered if this small nation with just 7 million inhabitants can become the new paradise for miners.
Can Laos compete with the United States in the race to see which country concentrates the most mining power of Bitcoin? It may take us some time to discover the answer, considering that this Southeast Asian country is just taking its first steps, while The United States is already walking more easily 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 climate and energy favorable 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 the extraction of cryptocurrencies.
To achieve this, the country may have to summon foreign experts, who would have to arrive to build, operate, repair, clean and test mining centers located within large warehouses linked to hydroelectric plants.
Unfortunately for Laos, the weather is often hot, making it difficult to cool down 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 evolves and cryptocurrency trading in Laos.