The overzealous attacks by the Chinese government to limit the crypto mining in China is showing its results. The miner community is beginning to shift from the Chinese mainland. The exodus is fueled by the Chinese government’s exclusive restrictions on ICOs (Initial coin offerings), which led to 90% drops in the ICO startups where entrepreneurs returned the investors capital back.
The pattern was successfully uncovered when Bitmain, the main manufacture company of mining hardware in China announced its plans to leave the Chinese mainland and shift its headquarters and other facilities in Singapore. The company’s co-founder Jihan Wu has confirmed the migration and informed that the company is already expanding its operations in US and Canada.
One of the Chinese mining pool ViaBTC has shifted to Iceland and USA for operations. BTC.top is another such mining pool which had third largest capitalization in the Chinese market but is now shifting to Canada. The targets of these migratory patterns are clear. The cold atmosphere and stable policies regarding the cryptocurrencies are huge assets for these chosen destinations. The cheap electricity is another attraction. Canada, Iceland, and the USA are thus emerging as favorite hotspots for these emigrants to exploit and further their vision.
The Chinese government, on the other hand, is still targeting them all with constant fervor. This week some new laws were enacted to further restrict the mining activities. The bill stated that the purpose was to decrease the exponential consumption of electricity by these mining activities. The unofficially stated aim of the government is now to ensure the systemic exit of the mining population from the Chinese mainland.
These migrations will be likely consumed by other emerging magnets such as Russia and Iran which are offering significant benefits and stability to the moving miners. These movements are bound to redefine the dominance of East Asia in the crypto market and are likely to create new centers for trading.