Bitcoin Miners Moving Out Of China
China has hit the headlines for banning cryptocurrencies in its country. The country which had huge adoption before has now gone further to haunt Bitcoin miners which is leading some of the industry’s biggest miners to shift operation to other countries.
One perfect example moving out of China is Bitmain which has been running the two largest Bitcoinmining centers. The company is new setting up its regional headquarters at Singapore and it’s also already having mining operations in the U.S. More to that other centers have already been set up in Canada according to Wu Jihan who is the founder of the company.
Other Chinese companies moving from china are BTC.Top which is the third biggest mining pool which is already opening a facility in Canada while 4th ranked ViaBTC already has operations in America and Iceland. These companies are moving away from China which was one Wold’s dominant country when it comes to Cryptocurrency trading. The country’s policy makers seem not to be favoring cryptocurrencies in any way. Last year China banned ICO’s and the country’s authorities made proposals which would discourage Bitcoin mining.
The county plans to limit the power use in cryptocurrencies and has already asked local governments to guide miners to have an orderly exit from the lucrative business. The moves by these companies will definitely affect Bitcoin transaction speeds but may be a good move in the long run. China had the highest number of miners because the county has very low electricity. More to that the country also has low chipmaking factories and cheap labor too.
According to the founder of BTC.Top Jiang Zhouer: “We chose Canada because the county has a relatively cheaper cost, and also the country is stable and has good policies.” He also went on to say that they were considering having stations in Iran and Russia.
These policies of the Chinese government may negatively affect the recovering price of Bitcoin which has moved up by 6% in the last 24 hours.