More and more Chinese miners are studying other regions in which they could move their activities amid growing uncertainty about the future of the mining industry in China. Although the Chinese government has not yet confirmed that under the crypto-currency repression will fall and the miners, many of them are already planning to move their business to other countries.
It was reported last time that the state-owned energy company in Sichuan province will begin to fight with bitcoin mining. The company denied this information, saying that the document is only the company's internal paper. Ostensibly it only refers to the irrational distribution of hydroelectric power to the mining companies, and not to the rural areas of the province during the drought.
Because of this, many miners began to look for other places to accommodate capacities in order to reduce their dependence on further regulation by the Chinese state.
Chinese miner Akira Cui recently told South China Morning Post that many miners already visited Vietnam, Laos, Thailand, Russia and the US, discussing electricity prices with local authorities and buying platforms for future use. Cui argues that 'mining should go abroad, if there is a probability of at least one percent, that government bans apply to it.'
The South China Morning Post says it has tried to contact four large mining companies, and Cui was the only one who responded to them. Representatives of this industry seldom communicate with the media, as many miners conclude privately deals with local energy companies that hide from high-ranking officials and institutions.
'No one talks about it, because it's best not to advertise it,' said Cui.
He claims that he engaged in bitcoin mining in 2013 after selling his previous Internet company for 30 million yuan (about 4.5 million dollars). Initially, Tsui invested about 5-6 million yuan ($ 800,000) in equipment for mining, and now expanded to 100,000 machines.
Tsui notes that 90% of his equipment belongs to friends and clients for whom he supports his work. 'It is very inconvenient to be engaged in mining at home. Instead, customers can put equipment in my shop, paying rent and remotely controlling it, 'says Cui.
He says that providing a reliable source of energy is the main task for large miners. Each machine can generate bitcoins by about 100 yuan (15 dollars) per day, that is, the financial losses incurred from idle equipment can be significant. Thus, many miners are trying to prevent bans from the Chinese government and plan to move abroad.
'We are negotiating with partners in Los Angeles, and also visited Russia and Vietnam,' says Cui. 'If regulators ban our activities, it will take us about three months to resume operations abroad. The money spent on the purchase of land is a relatively small amount compared to everything else. '
Curiously, Cui's remark that the ban on crypto-currency in China may eventually become positive for the community of bitcoins in general. He argues that China's domination of the bitcoin market in recent years has undermined the decentralization of the crypto currency. She stated:
'It is important that bitcoin reduces its dependence on China, then it will become stronger, as it was already proved by the last price jump.'
Also, Cui believes that the Chinese ban on the work of crypto-exchange exchanges will lead to an improvement in decentralization. He noted that 'international exchanges are an abnormal phenomenon, any centralized institution contradicts the very nature of the crypto currency.'
🤗 source: http://bits.media 🤗