- Several huge Bitcoin miners are leaving China to escape a state crackdown.
- It will take several months to start operating again for these miners.
- Miners are currently running into limited data center capacity overseas.
Several huge Bitcoin (BTC) miners are leaving China to escape a state crackdown on all BTC mining activities. According to report, it looks like it will take several months to start operating again for these miners.
Miners are currently running into limited data center capacity overseas and logistical challenges. In fact, data centers from Texas to Siberia crawl to secure space and power/electricity for them.
BitRiver, a data center in Siberia hosting Bitcoin miners plans to build new facilities to meet Chinese demands. Roman Zabuga, BitRiver’s spokesperson shared,
We know companies are leaving China because they are running straight to us.
Of note, Bitcoin mining requires efficient hardware as it needs strong computing abilities and energy efficiency. Mining Bitcoin also requires an immense amount of electricity. This is necessary to maintain the ledger of transactions upon which Bitcoin is based.
It can be recalled, China’s State Council recently announced a crackdown on Bitcoin trading and mining activities. In fact, China’s first Bitcoin exchange, BTCC, closed its business last week.
With that said, the Chinese miners are now shutting down and looking to move out of their country. More so, they are seeking tolerant authorities, low temperatures machines, and cheap electricity. Meaning, the electricity is ideally from hydro plants or oil fields.
Based on research, the power consumed by Bitcoin mining globally in early June equates to Austria’s annual consumption. University of Cambridge’s research revealed that it has fall 50% since May.
Consequently, logistics are harder for small miners with little cash on hand to pay for shipping their hardware. Likewise, it is hard for those who are unfamiliar with operating overseas as they need to find trusted hosting centers.