ViaBTC 丨 Chinese Miners Look to Relocate Abroad

In the past half month, major mining pools in China were shut down in the wake of a clampdown policy. As a result, miners had to relocate their mining rigs overnight. Faced with the ongoing massive crackdown, some Chinese miners still waited for signs of recovery patiently, while others expected little and put their mining machines on sale. Xianyu,a well-known used goods platform in China, flooded with the users who are selling mining rigs at low prices. Transfer of power stations has become common on the platform as well.

However, for large miners who require huge working capital, it is not realistic to rapidly sell off a large number of mining machines at a time of such turmoil and uncertainty. For most miners, the sale of mining machines means not a temporary injury but a permanent death. By comparison, relocating overseas has become a common consensus in the Chinese cryptocurrency mining industry.

According to the Bitcoin Explorer, affected by the most massive emigration of miners in the history of Bitcoin mining, the hashrate of the entire network has dropped rapidly to the current 92.65EH/s, with the mining difficulty at 14.36T, down nearly 45% from the peak value. It is expected that the difficulty will go down further to 13.01T, which means there will be a decrease of 9.45%.

The market is hard to predict at present. Even though the crypto price seems sluggish and has fallen by more than 40% from the peak, the current price of Bitcoin remains above the shutdown price. Under this circumstance, losses continue to mount as long as miners leave their mining machines idle.

Therefore, the premium mining farms overseas have become the top priority among miners. Yet factors to consider vary from place to place: whether the country where the mining farm locates explicitly prohibits crypto mining or supports it, whether the local electricity resources are sufficient and stable enough to meet mining demands, whether the electricity is cost-efficient when the mining farm is at full load, etc. Also, they need to consider the hosting fees, local tax policies, and preferential treatments, if any.

Inadequate investigation of the above-mentioned situations may cause irreparable losses. A Rumor once had it a miner had all his mining machines, which were hosted in a mining farm in a certain country, confiscated by the local authority upon a ban on crypto mining. What’s worse, the poor miner was charged with “harming the local ecological environment” and was heavily fined.

We don’t know the truth of the remarks. But the fact is that miners struggle to find a reliable mining farm while mining farms cannot find stable miner hosting services. The information asymmetry caused by factors such as industry, region, and language has become a hard nut to crack in this process.

In response, ViaBTC Pool set up [Selected Mines] in December 2020 to help miners find resources conveniently. In April this year, it launched [Mining Companies], another gathering place of top resources in the industry, to serve ViaBTC users and partners. The two services will provide resources and valuable information for the majority of miners who look for mining farms overseas.

As a global leading mining pool, ViaBTC has set foot on the global market two years ago and has now grown into a provider of safe and stable one-stop mining services for users in more than 130 countries/regions around the world. Relying on the advantages of the international mining pool, it integrates industry resources and selects high-quality resources through a strict screening mechanism to serve miners. Among its efficient and considerate services, the [Selected Mines] details the location of reliable mining farms, local electricity prices (in both the flood season and the dry season), the contact information, size, and the minimum number of hosted mining machines (the number of units) of the mining farms.

The [Mining Companies] service integrates premium mining resources. Miners can compare the sales and service information of various mining companies, which make well-informed decisions based on their needs.

ViaBTC’s efforts to integrate premium resources and provide miners with efficient mining services also go in line with its commitment to always being market-oriented and user-oriented. Since its establishment in 2016, ViaBTC has adhered to the concept of safety, transparency, fairness, and freedom, and has won a good reputation among miners with years of accumulation and good service.

In the future, ViaBTC will continue to focus on technological innovation and explore the development direction of the industry. Equipping itself with advanced financial technology that it aims to promote the progress of the blockchain industry, bring it a better future, and realize the grand vision of “making the world a better place through the blockchain”.