Coronavirus Outbreak Halts Crypto Mine in China

Coronavirus Outbreak Halts Crypto Mine in China

Amid the outbreak of Coronavirus, Chinese government has taken a series of measures to keep the situation under control, which caused a mining facility, in particular, is forced to shut down.

According to the Weibo post of BTC.top CEO Jiang Zhuoer, all mining machines were forced to shut down at one of the mining farms he owns in a remote region in China.

Companies across the nation are affected, with the existing control of quarantine, people stay where they are and can not return to their work.

China’s a Major Miner Thanks to Affordable Electricity

According to his post, Zhuoer said that the firm was told it is currently not allowed to return to work. He claims that mining farm personnel have never stopped working and none of the maintenance staff have ever left this area before the period of quarantine control.

It is worth noting that, affordable electricity and resources in provincial areas such as Xinjiang, Inner Mongolia, Yunnan and Sichuan have contributed to China’s status as a major market for bitcoin miners.

Bitmain and Canaan Creative are China’s leading mining chip manufacturers, with Bitmain supplying 66 percent of the cryptocurrency mining hardware worldwide.

Coronavirus Outbreak Halts Crypto Mine, Delays Businesses

Nonetheless, as a result of the virus outbreak, companies like Bitmain, Canaan and MicroBT have released reports of delays in their after-sales services until Feb 10 on their websites.

Furthermore, as Bitcoin’s halving is less than 100 days away, some commentators on cryptographies believe this could trigger some serious price action. The time-span of the coronavirus outbreak overlaps with the half-emergence of bitcoin.

Mining companies are worried that these two factors will have a stronger impact on mining equipment maintenance and the delivery of new mining machines.

The upcoming halving is set to take place in May 2020, and this is considered a very important event in the history of Bitcoin. The halving is expected to boost the price of the world’s biggest cryptocurrency by May 2020. Bitcoin investors are eagerly awaiting this event which would push the Bitcoin higher to hit an all-time high like 2017.

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Abdulhay Mahmoud 414 Articles
Abdulhay Mahmoud is a creative writer with over 15 years of experience in journalism, translation, and investor relations. He has B.A in English and Literature from a reputable University. He recently became a contributor at Cryptolydian.com to fulfill his thirst in reporting digital coins and blockchain-related news, an interest was built over the years.