Topic: [2017-11-19]Chinese Bitcoin Miners Explore Relocating Abroad Amid Fears of Crac. (Read 3517 times)

Russia have pretty cheap electricity and it's attitude towards bitcoin became more and more liberal recently.

Question is will the country where they will relocate allow them for that purpose. The heat that will be generated by those mining machine is really enormous and will really contribute to global warming and what will the new country get from them if they relocate? Some countries even have a shortage of electricity supply.

It won't though. He'll be welcomed wherever he chooses to head. He'll have a mountain of machines looking for a home, he has fingers in pies everywhere. He's not leaving the scene any time soon.

Anything that fucks up Jihan Wu is fine by me.

I consider it Karmic payback for his bullshit-alt-coin hijinks with Roger Ver.

The Russian attitude to crypto has not been helpful to anyone looking to settle there. They really need to pull their finger out and clarify where they stand. It's way too skittish. Even then I for one would not want to be a foreigner in Russia generating huge amounts of money there. That makes you a juicy target to the government and other gangsters.

I hope they do it and the price crashes all the way to its hundreds, highly unlikely I know, but imagine the stampede to buy cheap coins then. Come on Chinese Government, stop lazying about and do something useful for once!

In Russia the situation is always unpredictable. If tomorrow Putin's friends want to have a monopoly on the market of mining, then using the uncertainty of the legislation on cryptocurrencies they are using law enforcement and criminals will leave the Chinese with no money and equipment. Why would the Chinese risk.

Why are they not friends? They have their own plans for mining there, I learn from their news. Russia is well suited, there is cheap electricity, and a good climate. Do not have to use extra electricity for cooling

I don't know what will be the options right now. Relocation need a lot of money to begin with and then where are you going at? I don't know what going on the mind of the Chinese government now, why the sudden U-turn, maybe because they are really afraid of what bitcoin can do to their citizens, so much freedom.


Yes, I think so but the big question is where to go? Countries with the cheapest electricity like Russia and India are not friendly to bitcoin. Only Canada is the best logical choice, but again, so much money will be involved in relocation that we don't know if ROI can be made by the miners.

Bitcoin farm needs cheap electricity, reliable internet connection, and a cold wheater. But they do not need to be in central areas. It is great for places that have hydropower in places that are not so populated.

Miners in China are located in some places where consuming such amount of electricity would immediately light them up on the power grid network like

A Christmas tree, as my sister likes to put, they will get caught as if they peed in a pool, bottom line they're fucked, but not for a long time, they could

Relocate their farms in less than 10 days, even before the difficulty readjusts itself.

I think China has already ban ICO and their next crack down would definitely be on mining .  At one time few years ago they were leading nation in this cypto currency and now they have slipped back a lot due to this imposition of bans .

It is really about time for Bitcoin miners to be leaving China for good as the government is not treating them with welcome arms and instead look at them as sort of a problem. These entrepreneurs are very much welcome elsewhere. I am hoping that there would be an exodus soon of miners from China to other better countries. The main issue they will always consider is of course the cost of the electricity...we are hoping that soon better mining rigs requiring less power can be developed and sold on the market so as to lessen the environment impact of this lucrative economic activity.

It's likely the result of the Chinese government not taking the crypto market seriously initially. If we look at their latest crackdown on the exchanges there, it definitely looks like a 'last resort' move in an attempt to disrupt the growth of this market, but they failed in doing so. Next logical step is the mining aspect, so indeed, they prefer to look into alternative options when it comes to a second best location/climate for their mining operations. If China ends up cracking down on miners as well, which is quite likely considering their previous actions and their paranoid, we'll be freed from a major obstacle for ever.

I think it is not so simple. In order to organize the activities of miners in the country should be a large amount of excess electricity. And the price of electricity should be low. The set of countries given in the article makes me think that this is another fake. The only country from the list oblduma such capabilities is the United States, but there is not cheap electricity and undefined legislation concerning cryptocurrencies.

The Chinese government has been too long to decide whether to regulate the crypt-currency and conduct an ICO, or to impose a ban on them. The people can not stand the uncertainty.

Chinese Bitcoin Miners Explore Relocating Abroad Amid Fears of Crackdown

An increasing number of Chinese miners are reportedly exploring other jurisdictions in which to operate amid growing uncertainty regarding the future of China’s mining industry. Although the Chinese government has not indicated that it will extend its cryptocurrency crackdown to target miners, many are making plans to base their operations elsewhere.

Vietnam, Laos, Thailand, Russia, and the United States are Among the Nations that Chinese Miners are Considering
Last week, a circulating document indicated that the state-owned power company in China’s Sichuan province would be mounting a crackdown on bitcoin mining. Despite the company seeking to play down the document – stating that the document comprised an internal memo addressing the misallocation of scarce hydropower to miners rather than underserved rural communities during the province’s dry season – many miners are increasingly exploring international options in order to reduce their vulnerability to further regulatory action on the part of the Chinese state.

Chinese miner, Akira Cui, recently told the South China Morning Post that many miners “have already paid visit to Vietnam, Laos, Thailand, Russia and the US, negotiating electricity prices with local authorities and buying sites for future use.” Mr. Cui argues that “the [mining] business blueprint is bound to go overseas, even if there’s only a 1 percent possibility that China’s crackdown against bitcoin would extend to mining.”

The South China Morning Post states that it contacted four major mining companies, with Mr. Cui being the sole respondee. Representatives of Chinese mining companies seldom speak with media as many miners are reported to strike private deals with local power companies that are concealed from higher-ranking officials and institutions. “No one brags about it because it’s best to make a fortune in silence,” Mr. Cui said.

It is Estimated that Chinese Miners Produce Approximately 70 percent of the Bitcoin Network’s Total Mining Power
Mr Cui states that he started mining bitcoin in 2013 after selling his previous broadband internet company for 30 million yuan ($4.5 million USD approximately). Mr. Cui initially invested roughly 5-6 million yuan ($800,000 USD) into mining hardware, and has expanded to now manage 100,000 machines. Mr. Cui estimates that 90 per cent of his hardware belongs to friends and clients for whom he maintains their equipment. “It’s very noisy to store them at your own place. Instead, clients can choose between delivery or keeping them at my factory for a fee and access remotely via pass codes,” Mr. Cui states.

Mr. Cui says that securing a reliable source of power is the principal concern for large scale miners. Each machine can generate roughly 100 yuan ($15 USD) in profit daily, meaning that the financial losses incurred through having idle equipment can be significant. As such, many miners are looking to preempt an intensification of China’s cryptocurrency crackdown by seeking to relocate overseas.

Who’s Got the Power?
“We are in discussion with partners in Los Angeles, and have also visited Russia and Vietnam for potential sites,” Mr. Cui states. “If the regulators move to outlaw mining, it will only take us about three months to resume operations overseas. Money spent in buying land is a relatively small amount compared to the whole business.”

Curiously, Mr. Cui forecasts that China’s cryptocurrency crackdown may ultimately serve as a positive for the bitcoin community at large. He argues that China’s dominance over the bitcoin markets in recent years undermined the cryptocurrency’s decentralization, stating “it is important for bitcoin to [reduce its dependence on] China so it can become stronger, as was already proven in its latest price surge.” Similarly, Mr. Cui believes that the Chinese crackdown on cryptocurrency exchanges will lead to greater decentralization, stating “it’s abnormal to have exchanges globally, as any centralized institution goes against the cryptocurrency’s very nature.”

What impact do you think a crackdown on mining will have now that many Chinese miners are exploring relocation?
Source: https://news.bitcoin.com/chinese-bitcoin-miners-explore-relocating-abroad-amid-fears-of-crackdown/