According to the latest information, cryptocurrency miners operating in China have started to sell their mining equipment.
After China’s latest moves, there seems to be a huge increase in the number of mining equipment available in the online second-hand market.
Bitcoin Mining Machines
In Xianyu, China’s largest online second-hand marketplace, there has been an increase in Bitcoin mining machinery over the past few days, particularly in the two most efficient Bitcoin mining centers, Mongolia and Sichuan. The significant increase in the sale of second-hand Bitcoin mining machines came with the intensification of pressure on mining activities in China.
The Chinese autonomous region Mongolia has passed new legislation that will restrict any crypto mining activity in the region. To meet carbon emission targets, the new regulations ban any mining activity, large or small. After Beijing failed to meet its quarterly carbon emission targets, the Inner Mongolian region began taking strong anti-crypto mining measures in April of this year.
On the other hand, Inner Mongolia, along with Sichuan, was one of the most famous Bitcoin mining centers in the country, with multiple Bitcoin mining farms due to the cheap energy resources used to power these operations.
Does the Ban Affect Bitcoin?
China is currently considered the crypto mining capital of the world, accounting for almost 60% of the total hashrate on the Bitcoin network. The availability of cheap clean energy sources is the main reason for the country’s huge miner concentration. But many people were concerned that a country with autocratic rule like China would have such a high percentage of mining.
Also, when similar news of a possible mining ban appeared in the country a few years ago, miners had made similar moves to today.
Miners were forced to sell their coins to finance a possible migration to more favorable countries or to completely restructure their business as a result of the situation. Selling and uncertainty may continue for a while, but according to many experts, this will not remain a long-term obstacle to Bitcoin.
Some people even state that this is an important opportunity to make Bitcoin mining more decentralized.