Many Bitcoin miners in China are down with the blues as Beijing forces several operations to go offline.
China, once home to about 65% of the total Bitcoin (BTC) mining hash power has given the boot to several miners in the country.
The country’s Bitcoin mining ban means miners have been forced to shut down their operations with some establishments already moving hardware overseas.
Tweeting on Wednesday, Kevin Zhang, vice president of crypto mining advisory outfit Foundry says the mood among Chinese miners has grown sour, adding:
“Sentiment is obviously quite dreary and the reality is setting in that it’s GG for mining in China. Some mining friends have stuck around Sichuan since the Bitmain conference to drink their sorrows away. Now… 酒都不想喝了 – ‘not even in the mood to drink anymore.’”
According to Zhang, China’s Bitcoin ban has caused about 70% of the country’s mining capacity to shut down and by the end of June, close to 90% will have gone offline.
For some miners, the ban goes beyond shuttering operations as power stations in certain areas in the Sichuan Province have served eviction notices to Bitcoin miners. Affected miners reportedly have no more than a fortnight to uninstall all of their operating infrastructures including racks and containers.
As previously reported by Cointelegraph, some major Bitcoin miners have already begun to set up shop in other countries. BTC.com, the fifth largest Bitcoin mining pool by hash rate distribution is reportedly moving to Kazakhstan.
Earlier in June, Miami Mayor Francis Suarez sent an open invitation to Chinese miners, offering the city’s cheap nuclear power and favorable regulations as incentives.
However, Zhang argued that the migration overseas for Chinese miners could be anything but seamless. With hosting capacities outside China reportedly oversubscribed, miners may have to deal with higher costs in other countries.
Moving to the United States might also present another major cost issue for miners on account of the 25% U.S. tariff on Chinese goods.