According to the CEO of Phoenix Store who is the company’s local partner Europe Middle East Africa Bitmain, half of the computing power lost due to the ban on BTC mining in China will never be brought back online.
Above all, China wanted to preserve its financing from the IMF and the World Bank
Phil Harvey is the CEO of Phoenix Store, a geographical partner of the company Bitmain who is essential in the mining sector. Indeed, Bitmain shipped from its factories billions of ASICs, representing 75% of the global market… In short, people who know what they are talking about because they are present in the world market and who have kindly given their impressions on China’s crackdown on mining.
As powerful as it is, China is nevertheless subject to international constraints. Indeed, to obtain financing from the International Monetary Fund or the World Bank, the world’s second largest economy must make efforts in certain areas especially ecology, by reducing its carbon footprint. More than anything, China needs to maintain its current growth and must from time to time let up.
“The easiest industry to shrink overnight was a gray area industry. Some 68,000 gigawatts of electricity were removed instantly in China simply by banning bitcoin mining.”, under Phil Harvey.
Certainly, BTC mining is an important source of income, but in comparison to the sums that the IMF or the World Bank invest in China for projects like road infrastructure that remains of the sansonnet rupee… “So it was a quick and easy decision for China to remove these miners and reduce the carbon footprint with the stroke of a pen”, added Harvey.
Most Chinese mining machines were already obsolete
While several mining companies have announced that they want to move their machines to countries such as Canada or Russia, Phil Harvey however, provides thatat least half of the Chinese computing power will not be reactivated.
“Because these are old machines that were in a warehouse for many, many years and were only 5% to 10%, and they were on. But it doesn’t make commercial sense to remove them now and move them.”
The miners in question would still be worth a maximum of $ 150 to $ 200, and moving them would cost about the same amount per unit to move them. As economic profitability is no longer present, these machines will logically not be reconnected under Phil Harvey.
As Russia, Canada and Kazakhstan prepare to take on a higher prominence in BTC mining, will the Hashrate quickly return to its former highs?
Graduate engineer, escaped from the open space, I found happiness on the internet and I believe in crypto.
DISCLAIMER
The words and opinions expressed in this article are the sole responsibility of the author and should not be considered as investment advice. Do your own research before making any investment decisions.
