The Bitcoin mining crackdown in China has significantly impacted the cryptocurrency industry. According to reports Bitmain is looking for ways to reduce the burden on Chinese miners who need to dump their processing equipment due to the ban.
According to an announcement on Thursday, Bitmain, the cryptocurrency infrastructure company behind the Antiminer, has informed that the firm will temporarily cease the sale of mining machines in its efforts to help secondary sellers offload their supplies.
Bitmain Wants to Push Buyers to Chinese Sellers
Suspending the sale of new mining devices is expected to force companies to buy second hand miners that previously belonged to Chinese mining operations.
The, “second-hand market is under great pressure. In order to help the industry transition smoothly, [Antminer] decided to temporarily suspend the global spot sales,” said the announcement from Bitmain.
Before the ban was issued, Bitcoin miners had been in short supply. The supply-demand imbalance was present in the cryptocurrency industry as California chipmaker Nvidia limited the hash rate capacity of its new GeForce RTX 360 GPU, which was originally targeted to gamers.
Bitcoin Mining Capacity Is Being Hit
Following Chinese lawmakers extending their Bitcoin mining ban to the province of Sichuan, it’s expected that over 90% of China’s Bitcoin mining capacity will be shut down.
China controlled roughly two-thirds of the total Bitcoin mining hashing power until the ban. Starting in 2017, the country has been tightening its grip on the cryptocurrency industry after the government issued bans on trading.
According to various reports, China’s mining crackdown drives miners to look for places with more favorable jurisdictions, such as Texas. While the ban may act as a short-term disruption to the Bitcoin industry, longer term, it is likely a great influence on fresh development.
Nikkei Asia reported that Shenzhen-based BIT Mining is planning to invest $26 million in the US state under its partnership with Bitmain by extending its operations in Texas.