Institutional interest in Bitcoin and crypto mining is on the rise. In fact, crypto mining space now records massive growth in institutional investment.
The United States is now the new centre of the Bitcoin and crypto mining industry. In fact, as of April 2021, it was the world’s second-largest bitcoin mining destination, accounting for approximately 17% of all bitcoin miners.
According to CNBC, this represents a 151 percent increase from September 2020. “We’ve had a serious growth of mining infrastructure in the United States for the last 18 months,” states Darin Feinstein, Founder of Blockcap and Core Scientific.
“We’ve noticed a massive uptick in mining operations looking to relocate to North America, mostly in the U.S.” In addition, Forbes indicated in a report that China’s recent crackdown on cryptocurrency mining is a move that’s expected to help shift the industry’s center of gravity from Asia to North America. “… mining is set to become a whole lot easier (and profitable) for North American crypto miners, thanks to the Chinese government’s aggressive crackdown on the industry. Until recently, China accounted for between 65% and 75% of all Bitcoin mining,” the report stated.
Overall, businesses as well as governments are gradually becoming more open to the use of cryptocurrencies. And, while China took steps in one direction, other countries have instead opened up to the cryptocurrency market. For example, El Salvador just recently become the first country in the world to adopt Bitcoin as legal tender. Shortly after, leaders in Argentina, Brazil, Panama, and Paraguay have also endorsed the move on social media, pointing to the potential development of a trend in South America.
In addition, financial institutions are also more accepting of the digital assets. Morgan Stanley has recently purchased 28,289 shares of Grayscale Bitcoin Trust through its Europe Opportunity Fund, according to a U.S. Securities and Exchange Commission filing. Furthermore, a report by Coindesk indicates that Morgan Stanley has been increasingly active in the cryptocurrency space in recent months to meet growing demand from its clients. Overall, the banking and financial services application area is expected to hold the largest market size in the blockchain market.