Chinese BTC Mining Farms Shut Down Hurt By Coronavirus

Chinese BTC Mining Farms Shut Down Hurt By Coronavirus

In a bid to control the Coronavirus, China’s authorities are taking tough measures against crypto mining units. This led some Chinese BTC mining farms to end their operations.

Since Chinese BTC mining farms represent a significant portion of mining space, the crackdown will definitely impact the BTC price in the coming days.

Normally, Chinese mining units have broad infrastructure to mine BTC. Thus, broad offices and industrial units are an ideal environment for the rapid spread of virus.

The Coronavirus spreads through the air so it has become important to monitor such units. Accordingly, the Chinese authorities have taken strict procedures to contain the virus, so some industrial units were closed and people were confined to their homes.

The mining firms will bear the burden of the epidemic. Jiang Zhuoer, a director of local BTC mining facility, said the authorities will crack down on crypto mining firms in the days to come.       

Accordingly, the spread of Coronavirus will dent the cryptocurrency prices in the short term.

The epidemic affected some cryptocurrency-related activities such as the delay of TOKEN2049; a major crypto-event held every year in Hong Kong.

Thus, TOKEN2049 was rescheduled from mid-March to 7-8 October 2020.

Despite efforts to control the deadly virus through closure of border crossings with mainland China, Hong Kong was experiencing even greater uncertainty because of local anti-government protests.

Recently, Bitspark, Hong Kong-based blockchain payments firm, has announced that it will end its operations next month due to restructuring issues as well as coronavirus and political protests.

Local Insurers use Blockchain in handling coronavirus claims

Cryptolydian reported today that Chinese insurance companies use blockchain to handle claims linked to coronavirus after the outbreak.

Xiang Hu Bao, an online mutual assistance network, added the coronavirus to the diseases eligible for a maximum one-time payout of about 100,000 yuan ($14,300).

In the same context, Blue Cross Insurance, which is owned by Bank of East Asia, is helping to reduce the regulatory effects of coronavirus outbreak with medical claims program.  

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.