Loading...

Chinese Bitcoin farms shut down amidst Coronavirus panic

Chinese Bitcoin farms shut down to prevent the spread of Coronavirus

Most read

Loading Most Ready posts..

TL;DR

Chinese Bitcoin farms are under attack once again! Authorities in China are cracking down on cryptocurrency mining units especially BTC farms in a bid to control the novel Coronavirus. Since Chinese Bitcoin farms represent a significant chunk of the BTC mining realm, it will surely impact the coin’s price in the coming days.

Chinese mining farms are usually industrial-grade with large infrastructure in place to mine BTC. Naturally, large offices and industrial units are an ideal environment for a virus to spread quickly. Since Coronavirus spreads through the air, monitoring such units has become vital. In their effort to contain the virus, the country’s authorities have taken drastic steps where cities are deserted, industrial units are closed, and people are confined to their homes.

Crackdown on Chinese Bitcoin farms to check the spread of Coronavirus

Chinese Bitcoin farms will also have to bear the brunt of the virus. Jiang Zhuoer, an operator of a Chinese BTC mining facility, says that authorities will be targeting more crypto mining firms in the coming days. The pandemic of Coronavirus and crypto industry’s stagnation can have a dent on the price movements in the short term

Finance Magnates has published a report which mentions that the mining facility of Jiang Zhuoer along with many other facilities, has been closed down by the local authorities. Citing Coronavirus as the official reason, many other units including offices, manufacturing, and supermarkets, have been closed as well.

Brace for a slowdown due to the Coronavirus shut down

Jiang expressed his displeasure over the action saying that it is reasonable to regulate the staff movement to contain the virus. But how can shutting down mining machinery prevent the spread of the virus? The human movement must be restricted and regulated to control the epidemic. However, there’s no point in shutting down the Chinese Bitcoin farms and their machine-run operations. Coronavirus and crypto industry’s downturn can have a negative impact on the digital assets realm.

He goes on to add that many other factories and industrial units have been placed under suspension. His mining farm in a remote suburb is not an exception. He says that people will soon start dying from poverty rather than infection if such a shut down prolongs. It is interesting to note that despite this abrupt slowdown, the hash rate of BTC is on the rise in 2020.

Featured Image by Pixabay

Share link:

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

Stay on top of crypto news, get daily updates in your inbox

Related News

Cryptopolitan
Subscribe to CryptoPolitan