Countries vying for leadership in the blockchain space differ widely in their offerings to miners of cryptocurrencies, Taras Kollek, senior vice president of blockchain business development at Core Scientific, says.

During an interview with Cointelegraph, Kulyk stated that global retail diversity has increased as countries around the world compete for control of the cryptocurrency mining industry.

Kulyk believes that China has been a desirable hub for cryptocurrency mining due to certain factors, most notably lower labor costs, access to units and lower electricity costs during the rainy season, but he mentioned that:

A major economic problem driving the recent raids by the authorities is the theft of power, which local politicians have to contain. Another major economic problem that creates regulatory uncertainty are capital control issues. Both of these factors make the current regulatory environment in China insecure for digital mining companies. ”

Kollek says unrest at the highest political level in a country or jurisdiction is likely to result in incumbent operators scaling back planned investments or worse, shutting down and relocating them.

He noted that cryptocurrency mining is “extremely capital intensive, which means that operators need to be stable over long periods of time to ensure that the invested capital is recovered and to achieve a return on investment.” He also warned that political turmoil “could disrupt this much-needed stability”.

Kollek noted how the new regulations affected competitors in certain countries such as Iran, Ukraine, Canada, and Kazakhstan:

“Overall, we are seeing a easing of the regulatory burden on digital mining as it is increasingly seen as a way to return the sunset industry’s assets to the technology 2.0 economy.” Governments are turning to their regulatory policies and making their policies more favorable, especially with regard to mining, in order to gain competitive advantages over other players in the mining industry. ”

Given the emerging regulatory clarity regarding cryptocurrency mining, Kollek believes that “institutional investors will continue to allocate portfolio space to market leaders” and concluded that:

“The stronger the leadership team and the transparency of ownership and operations, the more likely the company will be a target for investors looking to enter digital mining.”

Source: CoinTelegraph