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Crypto mines must close in China, ‘didn’t expect it to go so fast’

Mines are being shut down head over heels on Chinese social media. Equipment, such as mining computers and fans, will be secured. Most crypto mining operators in China choose eggs for their money: “Everything revolves around moving abroad,” says Deng of Bitmall, as his company is called, in a hotel room in the provincial capital of Chengdu.

Visiting mines is sensitive these days, most miners don’t feel the need to speak to the media. Deng doesn’t think that’s a problem, but he also prefers to meet in the city. “In a few years we have grown to eight bitcoinfarms“, as the mines are called in English. “Some people secretly continue to mine, we think it is risky and so have stopped completely.”

He’s packed his bags for a one-way ticket to Russia. He hopes to soon put his mining computers on the train to the Siberian city of Irkutsk. “Close to China, that’s nice,” explains Deng. “In addition, the local government in Russia gives our industry space. There is a lot of growth potential,” he thinks.

At the beginning of this year, the Chinese miners still responsible for almost 80 percent of the total hashrate, the total computing power in the bitcoin network. Since last summer, according to the University of Cambridge, that figure has been hashrate monthly, to zero. According to party tabloid the Global Times, about 80 to 90 percent of the mines have now been closed. America has taken over from China, followed by Kazakhstan and Russia, all places where many of the major mining companies have moved.

‘Challenging times’

In addition to the mines, crypto platforms where the Chinese could trade their bitcoins and other virtual currencies until recently are also closing their doors in China. Back doors that were previously accessible are closed. The same applies to news platforms that report on developments in cryptoland.

“These are challenging times,” also says ‘Crypto Lucy’, as she calls herself. The young entrepreneur links mining companies from home and abroad. She also vlogs about topics such as crypto and blockchain technology and organizes meetings in Chengdu. “The government has banned pretty much everything related to crypto,” she concludes, “but people remain curious. There is still a market for it.”

turn your back on China

She herself says that she now mainly focuses on the international market. “You can do business secretly, but I don’t want to end up in jail,” she laughs. “Many of my friends in the industry have gone abroad, such as to Singapore.”

She wants to continue her events, but she says she no longer wants to make deals with bitcoin mining. “The companies that are still operating do so secretly. Otherwise, your machines will be confiscated.” That is also the reason for Deng to turn his back on China. “There are places where we hear of the machines being confiscated,” he says. “You can lose everything. I’m going to buy a few more coats and prepare for the trip to Siberia,” he laughs.

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