China bans bitcoin mining,’monopoly’ of mining machine sales

Input 2021.02.24 14:36 ​​| Revision 2021.02.24 14:41

China bans bitcoin mining, profits from mining machine sales are monopolized

China, which banned bitcoin mining and trading, is ironically gaining a return on the bitcoin craze. Through the sale of Bitcoin miners.

According to the Global Times, an English version of the Chinese state media’s Exchange Times on the 24th (local time), the recent bitcoin craze brought bitcoin miner manufacturers to a boom. It was found that mainly Canada and the United States ordered miners.

China legally prohibits the mining and trading of cryptocurrency, but ironically, it is at the forefront of the mining machine manufacturing market. China’s National Development and Reform Commission has announced plans to ban cryptocurrency mining in 2019. This is because resources such as electricity are seriously wasted when mining Bitcoin.

On the other hand, in the mining machine manufacturing market, China is leading with over 90% of the total market share. In the global mining market, Canaan Creative, ebang international, and Bitmain account for more than 90% of the global market. As Bitcoin surpassed 50,000 dollars and hit an all-time boom, orders poured into these manufacturers.

Kanan told the Global Times that orders for mining machines have soared since last year, and demand has been soaring in North America and Central Asia. Kanan signed a pre-order last year to deliver 6,400 miners with Canadian listed company Hive Blockchain, and with US mining giant Core Scientific, pre-orders for 6,000 miners.

Kanan said that more than 100,000 units have been pre-sold in the North American market so far, and the upfront payment is nearly $200 million (about 22.2 billion won). Kanan explained that due to a sudden increase in orders, the inventory of the existing models was already exhausted in February of last year, and new more powerful models were being developed and introduced.

Another manufacturer, Bitmain, said that all models of its miners have been sold out, and that no new models have been released yet.

In line with the Bitcoin boom, shares of miner manufacturers are skyrocketing. Kanan’s share price rose 318.04% this year alone, while Lee Bang’s 82.21% rose.

“The rising bitcoin price has brought greater benefits to miner manufacturers,” said Chen Bo, director of the Digital Finance Research Center at Central Financial University University in Beijing, China. Some of the Chinese miner manufacturers are benefiting so much that they have plans to go public in the US.

“As more investors are entering the bitcoin market, this demand is expected to continue for a long time,” said Chen.