Crypto-Mining Hardware Manufacturers Delay Shipments on Coronavirus

Crypto-Mining Hardware Manufacturers Delay Shipments on Coronavirus

Major manufacturers of crypto-mining systems notified their clients that their cargos would be postponed for one week due to the coronavirus quarantine in China.

Artem Eremin, product manager at 3Logic, said:

“This week MicroBT, Bitmain and Canaan notified customers the application-specific integrated circuits (ASICs) they ordered would not be immediately sent, as the Chinese government extended New Year holiday hours due to the outbreak.”

MicroBT has released a statement referring to the Guangdong provincial government’s decision to extend the Chinese New Year holiday till February 9.   

“The production, delivery, after-sales service, and send and receive documents and other arrangements would be delayed as a result,” MicroBT stated.

Japan’s Economy Minister Yasutoshi Nishimura earlier said the coronavirus poses serious threats to global economy, adding that this epidemic would weigh on Japan’s economy, especially when it comes to tourism.

Chinese tourists account for 30 percent of Japan’s visitors. Accordingly, travel delays and cancelations are among the minister’s main concerns.

The Minister forecasts corporate earnings and factory output to be negatively impacted by the virus.

There are several premier car makers such as Nissan and Honda working at Wuhan; virus’ epicenter. Nissan plans to relocate workers from the city, while Honda is already evacuating them.

Chinese Bitcoin miners control 65% of the world’s hash rate, reaching its highest in 2 years.

Analysts have expressed concerns over decentralization of cryptocurrency. Increase in hash rate means increased opportunity of mining and receiving block rewards, which means more dominance of cryptocurrency market.

Economist Nouriel Roubin said:

“There is a massive centralization of power among miners and the blockchain is not even close to decentralization and democracy.”

The surge in Bitcoin mining power is caused by sharp increase in profitability as prices reached $13,000 in July.

“More than anything miners have been taking advantage of increased cashflows, especially in spring and summer”, says Chris Bendiksen, Head of Research at CoinShares.

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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.