Cryptocurrency mining companies are pushing ahead with 'de-China' at a rapid pace, and some welcome the further decentralization of Bitcoin.
Many crypto asset (virtual currency) mining companies have set up factories in China due to the low electricity prices, but
Cryptocurrency Companies Are Leaving China in'Great Mining Migration'-WSJ
https://www.wsj.com/articles/cryptocurrency-companies-are-leaving-china-in-great-mining-migration-11629624602
China, where cheap electricity from coal-fired power generation and hydroelectric power generation is available, has long been an agglomeration of mining factories, and China sometimes accounted for 70% of the crypto asset mining share. However, the crypto asset industry in China was severely damaged by the government's tightening of regulations on crypto assets in May 2021.
It is known that some mining companies have escaped from China before the Chinese government's regulations got into full swing, but others have been forced to escape from China at a rapid pace. Bit Digital, a mining company listed on the Nasdaq , is one of them, and it is said that it is trying to take more than 20,000 computers out of the country in response to the tightening of crypto asset regulations in China.
Mining companies obtain newly issued crypto assets by providing the blockchain with a large amount of computer computing power. As a result, mining companies need to run large numbers of high-performance computers, but packing these computers so that they are not damaged and shipping them overseas can be a daunting task. According to Samir Tabar, CTO of Bit Digital, 9484 computers remain in Sichuan as of June 30, hiring an international shipping company9. It plans to ship all computers to North America by the end of the month.
And while cheaper than buying a new computer, the process of shipping all mining computers in China abroad can cost millions of dollars in total. .. In 2021, crude oil prices are on the rise and are still in the high $ 60 range at the time of writing the article, and there is also a bottleneck in freight transportation due to the pandemic of the new coronavirus. In addition, computers sent from China to the United States are subject to a 25% tariff, so mining companies have to bear all these costs.
The problem faced by mining companies is not only the labor and cost of transportation, but also 'where to open a new mining factory'. In the first place, we set up a mining factory in China because the electricity price is low, and even if mining in China becomes impossible, if we operate in a new place with a high electricity price, the profit will be obtained. It will be thin. Already in the United States, mining companies are paying attention to areas where electricity prices are low, and there is a growing movement to build large-scale mining factories.
How did the famous apple producing area, which is rich in nature, transform into the city of 'Bitcoin Mine'? --GIGAZINE
'This is a big financial blow to Chinese miners,' said Fred Thiel, CEO of Las Vegas-based mining company Marathon Digital Holdings. 'This is another location where General Motors closed its Detroit factory. It's like building a new factory in Las Vegas, 'explains how big an escape from China is.
China has long been strict about crypto assets, but many mining companies have developed their mining factories in China because of cheap electricity, even though they are aware of the risks. Alejandro De La Torre, vice president of mining pool Poolin, who has been operating in China for a long time, commented, 'Concerns have always been in our minds, but until now it was not an imminent issue.' It was unexpected for many companies that China would eliminate crypto assets so quickly.
As mining companies move away from China at a rapid pace, demand for companies such as Compute North, which provides the infrastructure needed for crypto asset mining factories, is increasing. Big Digital, which is about to move a total of 20,000 computers to North America, is also planning to partner with Compute North to start a new mining factory. Compute North already provides mining facilities in Texas, South Dakota, and Nebraska, but plans to open five new facilities in response to increasing demand. Also, in China, some companies are undertaking cleaning, inspection, and packaging of equipment before transporting mining computers overseas.
According to The Wall Street Journal, the relocation of mining factories outside China has promoted 'decentralization of bases that provide computing power to blockchain' from supporters of crypto assets, and more decentralization of Bitcoin. Some people welcome it as it progresses.
In China, a high court in Shandong Province officially stated that 'cryptographic assets are not legally protected' in connection with a trial filed by a man whose money invested in crypto assets could not be recovered due to a government decision. It is reported that what was said.
Court in China says cryptocurrency'not protected by law' in ruling that could set a precedent for bitcoin lawsuits | South China Morning Post
https://www.scmp.com/tech/policy/article/3146026/court-china-says-cryptocurrency-not-protected-law-ruling-could-set
China's regional court: Bitcoin not legally protected asset
https://coinjournal.net/news/cryptocurrency-not-protected-by-law-says-chinese-court/
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