Just days after China’s crackdown on the Bitcoin mining business, Bitmain Technologies Ltd., one of the industry’s top Bitcoin mining machine manufacturers, has halted sales of Bitcoin mining equipment.
Following a 75 percent price cut on mining machinery, Bitmain said yesterday that it has halted the sale of new equipment. This shift is said to be the result of a slew of diverse causes coming together. As miners shut down their equipment, Colin Wu, a crypto writer in China, noted that they are also selling those used machines second-hand, affecting Bitmain’s sales.
Postponing mining equipment sales is thought to help miners make better sales for their equipment as they try to quit the sector.
China’s Bitcoin miners have been ordered to cease operations in the previous week.
Bitcoin mining consumes a tremendous amount of energy, and both governments and individuals are concerned about the industry’s environmental impact. Given that China controls almost two-thirds of the global mining market, the government’s crackdown is the most urgent threat to Bitcoin miners today.
In any case, given China’s goal of carbon neutrality, the restriction on mining is perhaps unsurprising. While China struggles with its mining industry, there is speculation that other countries could benefit.
Kazakhstan could be one of them, as Chinese mining company Bit Mining claimed that it had sent the first batch of mining equipment to the country in response to China’s embargo.
Bitcoin mining has also gained popularity in the United States, even though the activity has sparked environmental concerns. In other parts of China, the government has taken a more wide approach to crypto activity. The People’s Bank of China, the country’s central bank, has issued an order for financial institutions to stop dealing in cryptocurrency.
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