In China, Bitcoin mining is no longer as profitable as it once was. In fact, many miners have already packed up their bags and left the country in search of greener pastures.
According to a recent report by Quartz, some of the largest Bitcoin mining facilities in China have seen a drastic decrease in operations. F2Pool, one of the world’s largest BTC mining pools, has seen its hash rate drop by nearly half since October 2018.
Likewise, Antpool, another major Chinese mining pool, has also experienced a significant decline in hash power.
What’s more, many individual miners have also stopped or reduced their operations due to the declining profitability of Bitcoin mining in China.
Some miners interviewed by Quartz said they no longer even feel like drinking anymore.
The decline in Bitcoin mining activity in China is largely due to the country’s crackdown on cryptocurrency-related activities. In September 2017, the Chinese government ordered all ICOs to be shut down and banned all crypto exchanges from operating in the country.
Since then, the government has also cracked down on Bitcoin mining, forcing many miners to close their operations or relocate to other countries.
Despite the challenges, some miners have vowed to continue operating in China. Li Zhibiao, CEO of Bitmain Technologies, one of the largest Bitcoin mining companies in the world, said that his company will continue to invest in China despite the current environment.
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Tweeting on Wednesday, Kevin Zhang, vice president of mining cryptocurrency consulting firm Foundry, said the mood among Chinese miners had turned sour, adding:
“The feeling is obviously quite grim and the reality is that it’s GG for mining in China. Some miner friends have stayed in Sichuan since the Bitmain conference to drink their grievances. Now, ‘not even in the mood to drink anymore.’”
According to Zhang, China’s Bitcoin ban has closed about 70% of the country’s mining capacity, and by the end of June, about 90% will have gone offline.
For some miners, the ban goes beyond closure operations as power plants in certain areas of Sichuan province have sent eviction notices to Bitcoin miners. Affected miners have no more than fifteen days to uninstall all of their operational infrastructure, including racks and containers.
As previously reported by the Cointelegraph, some of the top Bitcoin miners have already started to establish themselves in other countries. BTC.com, the fifth largest Bitcoin mining pool by hash rate distribution, is moving to Kazakhstan. (Chinese Bitcoin miners)
Related: Electricity Denied, World’s 5th Largest Mining Supply Leaves China for Kazakhstan
In early June, Miami Mayor Francis Suarez sent an open invitation to Chinese miners, offering the city’s cheap nuclear power and favorable regulations as incentives.
However, Zhang argued that the overseas migration for Chinese miners could be anything but perfect. With hosting capacities outside of China supposedly overcrowded, miners may have to deal with higher costs in other countries.
The move to the United States could also pose another big cost issue for miners, given the 25% US tariff on Chinese products.