Bitmain suspends sale of cryptomining machines on the back of ban in China
Bitmain, the largest producer and supplier of Bitcoin and other crypto mining machines in China, has announced that it is suspending sales of its miners in China and globally as well due to the mining ban in China.
China had recently announced a ban on all bitcoin and crypto mining operations on its soil in a measure that is expected to root out financial crime using crypto. The ban is also reportedly in anticipation of the launch of a digital currency by China for which it wants to clean up and regulate the industry before the launch happens.
This has forced many of the bitcoin and crypto miners in China to sell off their miners or to look to move overseas like Kazakhstan, Australia, Indonesia, Russia, and other countries. This has led to a huge selling pressure of the mining machines in the second-hand market and Bitmain has decided to suspend sales so that it does not put additional selling pressure on the market.
Bitmain views this as a temporary measure to help with the smooth transition of the market as the miners in China decide what they want to do and till the time the pressure on the secondary market begins to ease in time. It is indeed a tough time for the crypto market with the traders grappling with falling prices and the miners facing crackdown and regulation around the world.
There has been a lot of focus on the environmental effects of mining in recent times and the miners have been facing the heat due to this. There arent many low-cost electricity sources available in most countries and the mining industry is looking towards renewable energy as a means of continuing their mining.
In recent months, El Salvador had announced its intention to build a giant mining site based purely on renewable energy, along with measures to legalize bitcoin, and this is expected to show the way for the bitcoin and crypto miners to offset the carbon footprint and make themselves sustainable in the future.
On the one hand, we have central banks continuing their trials with digital currencies while on the other, they continue their crackdown on bitcoin and other cryptos which sends confusing signals to the crypto industry. The industry is still in a maturing phase and this is expected to settle over the next couple of years which is when the real strong growth will begin. For now, it is a matter of survival and a grapple for a space in the industry.
