Istanbul, Turkey – February 19, 2018: Close-up of gold nuggets and bitcoin commemorative coins on the table. Bitcoin is a cryptocurrency and a global payment system.
According to the latest news Report According to Bitcoin mining data and metrics website Hashrate Index, the UAE is now becoming a growing destination for Bitcoin miners, especially in the Middle East.
Bitcoin Miners Seek Greener Pastures
In recent years, bitcoin miners have faced problems in popular bitcoin mining countries such as China and Kazakhstan. As a result, many miners were forced to find new centers of operations.
Mining Bitcoin is a difficult process, both economically and in terms of the amount of electricity required. It involves using powerful computers to solve complex math problems for rewards in bitcoins. This energy requirement is part of the reason miners have had problems across jurisdictions over the years.
However, the Middle East is now becoming a major destination for bitcoin miners, with the UAE leading the way among these energy-rich countries. The United Arab Emirates is helping to pave the way for the future of Bitcoin mining through increased access to affordable electricity, favorable access to financing, and a politically stable and business-friendly environment.
Over the past year and a half, a number of major mining companies have signed agreements and entered into partnerships with the digital asset arm of Abu Dhabi sovereign wealth fund (Zero Two) to create two gigabit projects that will place the UAE among the global bitcoin Coin mining map. As a result, the largest sum of money was spent on a single bitcoin mining site, with investments totaling $2 billion.
Now, these mega-projects appear to be starting to cement the UAE’s prominence in the bitcoin mining scene. According to data provided by the Hashrate Index, Bitcoin miners in the UAE should generate about 13 EH/s, equivalent to 3.7% of Bitcoin’s total computing power, assuming an average energy efficiency of 30 J/TH.
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UAE aims to become a global cryptocurrency hub
The UAE government aims to establish the country as a global hub for cryptocurrency and blockchain innovation. Several recent initiatives demonstrate the country’s serious commitment to becoming a leader in this nascent industry. The infrastructure is already in place, backed by government support, looser rules and big companies setting up offices.
Earlier this year, the country announced that it would introduce a “free zone” for cryptocurrency companies. Ras Al Khaimah Digital Asset Oasis (RAK DAO)allowing them to own 100% of their company.
The future looks bright for Bitcoin mining in the UAE. The country’s share of global bitcoin mining metrics should continue to grow as more mining companies are attracted to the region. However, given the region’s hot climate, temperatures could pose a challenge to the mining industry compared to large bitcoin mining regions such as Texas and Russia.
Furthermore, the report also suggests that the only way to mine Bitcoin in the country in a scalable and legally sustainable manner is through cooperation with government entities.
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