China’s online markets record a surge in mining machines following the government’s ban on mining activities as we reported in our crypto news recently.
China’s online markets especially Xianyu registered a surge in BTC mining machines listing over the past few days from Inner Mongolia and Sichuan region as the two most prolific BTC mining hubs. The rise in the sale of second-hand BTC mining machines came amid the growing crackdown on mining operations in the country. Inner Mongolia enacted new legislation that will restrict any type of mining business in the region and to fulfill the carbon emission goals, the new regulations ban all types of mining operations. After failing to achieve Beijing’s carbon emission goals, the Inner Mongolian area launched anti-crypto measures in April earlier this year.
On China’s largest online second-hand commodity trading platform Xianyu, the number of mining machines has increased significantly, mostly from Inner Mongolia, Sichuan and other places, and prices are also continuing to decline. pic.twitter.com/MgSn5kEK9w
— Wu Blockchain (@WuBlockchain) May 29, 2021
Inner Mongolia along with Sichuan is one of the most renowned BTC mining centers with a few BTC mining farms owing to cheap energy sources that used to power these operations. China is regarded as the world’s crypto mining capital that accounts for almost 60% of the total hash power on the BTC network and the availability of cheap energy sources is the main reason for the country’s large concentration of miners with most people being concerned that this major concentration of mining input is going to come from a country with autocratic governance like China. As a result, most regard the recent crackdown as a strategy to diversify mining concentration and decentralize the mining power input.
When there were other reports of probable mining ban in China, miners went on a similar selling spree. Most miners were forced to sell coins to fund the possible migration to other countries or to restructure the businesses as a result of the circumstances. The selling process and uncertainty could persist for some while but as per Bixin Mustafa Yilham who is the vP of Global Busienss development it should not dissuade BTC. Instead, he believes that now there’s a huge opportunity to decentralized BTC mining and that nothing essential about the crypto has been changed.
The fact that a lot of the world’s mining operations were consolidated in the country was regarded as one of the biggest arguments against BTC and a potential threat to the network. BTC mining is becoming more decentralized benefits all players and it also increases the crypto’s underlying strength and it could go thorugh more stages of development before more growth is visible.
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