Due to ever stricter regulations, mining farms move to new regions to work cost-effectively and efficiently. As the original blockchain hub, Japan has become a safe haven for many miners.
Subsidized rent and cheap electricity in Fukui
Unlike China, large mining farms in Japan are typically still unknown. However, increasing interest in cryptocurrencies and affordable industrial power is driving new Bitcoin miners into the favorable Japanese landscape.
As a small coastal town with approximately 250,000 inhabitants, Fukui offers a subsidy program that pays half of the rent for new businesses that occupy empty factory space. Although electricity costs are not the cheapest in the world, Fukui has cheaper electricity rates than Tokyo and offers local miners easier access to the facility. Electricity costs are a key factor in mining profit margins.
From finance to crypto – Japan is a movement
Founded by a former Japanese banking and trading house employee, Alt Design has been present in Fukui since September 2017. Alt Design operates around 500 GPU and ASIC miners to mine Bitcoin and Ethereum around the clock in a former high-end factory.
According to the Nikkei Asian Review, the company has 10 employees – all of them around the age of 30 – who care about maintaining the heat level, hash performance and electricity of the industrial plant. Electricity costs may be lower in regions such as rural China or Scandinavia due to hydropower production, but companies setting up in Japan emphasize that the market offers greater versatility for domestic customers. Shuhei Fujise, former banker and chief analyst at Alt Design, said in an interview:
“Electricity prices are still slightly higher here than overseas, but there is a demand for an agile company like us, and for the people who run the business …”
Migration from China or other key mining centers to Japan would mean greater decentralization of cryptocurrencies.
Although crypto-regulation is still in its infancy, it is constantly changing, making it difficult for crypto-miners to find their way in the long term. Just like the gold rush of the mid-19th century, crypto miners set out to gain their share of digital gold.
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