Bitcoin continues to woo various entities into its fold, including governments. This time around, Bitcoin hashrate is the focus of the government of Oman that just got into Bitcoin mining.
Oman Borrows A Leaf From El Salvador
Just recently, news broke that Oman was installing a billion dollar Bitcoin mining rig funded by the country’s government. The Middle-Eastern country seems to have woken up to the reality and appreciated the growing power of Bitcoin. This was reported by Forbes.
It’s can be argued that Oman saw the success achieved by others like El Salvador that adopted Bitcoin as legal tender and used it to back up its struggling currency and economy. Today, El Salvador is a beacon of success in the larger scheme of government-backed Bitcoin ventures. It’s economy has grown by huge bounds, the crimes rates have gone down by over 90%, and the national bonds are soaring high and even instigating a scramble among investors.
Jacking Up The Bitcoin Hashrate
Granted, Oman has elected to follow its own path towards Bitcoin adoption. It is estimated that if this plan works, and it should, Oman could end up contributing a sizable percentage of the global Bitcoin hashrate. As a matter of fact, the plan is to scale up the mining venture to contribute a minimum of 7% of the BTC hashrate by mid-2025. That’s a pretty big deal for a government.
Huge mining investments have been flowing into the Bitcoin industry for years, and this is expected to skyrocket especially with the debut of large funds like BlackRock and Grayscale pitching for a Bitcoin ETF. Many are confident that an approval will happen soon enough, albeit a bit delayed by US SEC. This would impact the price of Bitcoin and ultimately attract more miners. The upcoming Bitcoin halving event will also play a role in it.
What Can We Expect?
The Bitcoin hashrate has been increasing for the better part of the last one year despite a few isolated moments of decrease. This general trend could continue if huge investments continue to flow into the Bitcoin market.
Meanwhile, the crypto industry will gain hugely in assessing how government-operated bitcoin mining affects the industry and whether other governments and large financial institutions might want to get into it.
