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Bitcoin News

The Mass migration of Chinese crypto miners

Ashton Felix

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Chinese Crypto Miners

 China crypto miners

The Uncertain future of Chinese crypto miners can directly be attributed to the unsupportive policies of the Chinese government. This has many Chinese miners uncertain of what the future will hold for their industry.  Most mining farms in China are located in Sichuan province and solely rely on electric power provided by small hydroelectric stations. Recently, The Chinese government has proposed to close some of the power generation facilities in Sichuan as a means to protect the environment, many small hydropower stations in Sichuan province are slated to be closed later on this year. This proposed action by the Sichuan provincial government may eliminate an estimated  60% of all mining farms located in the province and is expected to result in the loss of around 15 thousand jobs that are related to the industry. Xinjiang province is another important place which many mining facilities in China are located. According to a file released by the government of Xinjiang. The Xinjiang government will further strengthen the management of virtual currency trading and production as well as actively guide mining enterprises to withdraw from the province. This stance by the Xingjiang government has many miners worried about what the future holds for them. 

 

Chinese Crypto Miner

The mass Migrating of Chinese crypto miners and their farms out of China has become an inevitable trend in the Chinese mining industry. The growing cost of electricity within China and the uncertain policies of the Chinese government make China no longer a sustainable place for the mining industry to continue doing business. Many owners of mining farms have begun to migrate their farms abroad. Some of the most sought-after countries for the Chinese crypto miners include The Kyrgyz Republic, Russia, Mongolia, also some other countries in Latin America and Southeast Asia. The mass majority of those countries have inexpensive  sources of energy when compared to China and are more than willing to accept the influx of Chinese investment into their respective countries. Although The Chinese crypto mining industry has about a 70% market share globally, the Chinese government seems disinterested to keep the vast army of miners and the multi-billion dollars industry chain within its borders and is insistent in pushing them out of the country indefinitely.

 

Context  Global Cryptocurrency Taxation Regulations Could Come as Early as 2019 according to G20 Report

Miners that are migrating to foreign countries are still facing many risks and challenges. The first problem is how to protect the assets of the Chinese Crypto miners. It is said that many mining machines transported from China to Russia “lost” for no reason and some miners have complained that after they paid the deposit, they were not allowed to commence their mining operation. The second problem is many Chinese crypto miners just simply don’t know how to do this sort of business outside of China. They no longer blend into and have begun to be scrutinized even in some of these other countries that they are operating from. It is very uncertain what the future holds for the Chinese crypto miner and only time will tell if they can settle into some welcoming place. 

Ashton Felix is currently a contributing writer for multiple crypto news sites. He got his big break when he mined his first bitcoin back in 2012. He enjoys learning about new technology and travels throughout Asia in his spare time. Justin immediately fell in love with the culture and people of China. He is currently based out of Shenzhen and is fluent in Mandarin.

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