Vietnam Crypto Mining Demand Rockets After China Ban

Following the drop in Bitcoin price in May this year, crypto mining activities significantly reduced in Vietnam. However, this changed from the time Bitcoin began to progressively surge in value in August, reversing the entire scenario in Vietnam. There has been a notable increase in crypto mining activities, an outcome that has increased the demand for mining equipment.

In a statement released by an administrator from a renowned Vietnamese mining company, it is clear that several factors have led to this increased demand. Among them is the China ban on mining activities.

China Ban

The crackdown on crypto mining and the consequent ban in China had a destructive effect on the entire crypto industry. This is because crypto mining in China accounts for a huge chunk of the world’s bitcoin production. After this ban, most miners were quick to dump their mining equipment and seek refuge in places like Vietnam, among others.

The relocation follows miners’ desire to align themselves with the law and collect some value from their machines, with most selling their mining rigs (selling in the form of scrap metal) following the ban.

Increased Demand in Vietnam

The result of the China ban is that all the crypto miners outside the Chinese borders will now have a bigger chuck to bite from. Benefiting from this reduced competition, the mining rewards that each mining operator gets increase proportionally to the amount of share they represent in the global network of bitcoin production.

The shutdown against crypto mining in China saw Vietnam benefit from an increased measure of processing power. Crypto mining rigs have increased along the Vietnam mainland following the ban. Many Chinese miners are now operating in Vietnam, and overseas acceleration is inspired by searching for a more successful market and high-quality mining resources.

With the increase in demand for Bitcoin and other cryptocurrencies like Ethereum, there is a notable demand for crypto mining in Vietnam. Mining operators are purchasing readily assembled mining hardware such as whole mining rigs and Graphic Processing Units (GPUs) to set up their rigs.

The thriving crypto mining economy as witnessed in Vietnam is an expected outcome following the ban. This is because Vietnam ranked in the top 27 among countries with high cryptocurrency ownership in the world. This is reinforced by the fact that crypto mining remains unregulated in Vietnam. Moreover, crypto is not acceptable as a means of payment within the Vietnamese borders.

The increased demand in crypto mining witnessed in Vietnam follows a boom for the companies that sell crypto rigs, alongside investors making profits from rising prices. There is also an increased demand for specialized equipment used for crypto mining. Everyone is trying to reap the most from the still unregulated market. Sales keep tripling, and the demand for Bitcoin has generally increased.

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