China has long been the best place for mining in the power of cheap electricity and abundance of vacant land in remote areas of the country. Now he is doing everything possible to banish the cryptocurrency. The process of fighting with them began in September of last year when the authorities banned the cryptocurrency and mining.
According to recent reports by the Chinese media attack on a mining business is actively conducted in the Xinjiang Uighur Autonomous region the authorities in the settlements on the banks of the Yangtze river drew attention to the small hydroelectric plant that feeds more than 40,000 miners. Due to the political instability in the Xinjiang and Sichuan already not attract miners. The last turn into nomads, ready to go anywhere in search of cheap electricity and a decent relationship with the authorities.
Major mining companies are shifting operations in USA, Canada and Iceland, small and medium stop the choice on Thailand, Cambodia and Vietnam, due to geographical proximity.
The miner Wu Di owns three farms in Kyrgyzstan, one of which is active, and two are in the standby status in case the remaining in China will one day be closed. Wu Di says:
Kyrgyzstan is my top choice. Now the authorities of that country friendly to cryptocurrencies.
In the role candidates are also neighbors of Kyrgyzstan with cheap electricity. In Russia, a growing number of mining-farms whose owners are looking for Chinese partners.
Here’s a typical announcement on this topic from the site Bitcointalk.org:
The owners of the mining farm on the territory of the Russian Federation are open to cooperation. We offer electricity at a price of 0.3-0.39 yuan per kWh and a favorable climate. Ready to buy a insurance on your equipment.
Geographical proximity allows real-time tracking of delivery and to save on transportation equipment.
Chinese miner, who calls himself Alex, explains:
Us $3.5 per kilo in the case of ground transportation plus an allowance of 2% of the price of the equipment.
New mining farm Alex, located in the Russian Chelyabinsk, accommodates thousands of devices for mining. Alex says:
Bitcoin is a world treasure. We go where mining is cheaper. Now different countries have different laws regulating bitcoin. Accordingly, a large mining farm will not rely on one single country.
Chelyabinsk, attracted Alex’s low temperature year round (according to the Russian partners — approx. ed.) and cheap energy. He says:
The city is located at the Eastern foot of the Ural mountains. The year round temperature is 25 degrees below zero, snow falls in October (which is the ideal climate for mining equipment). I signed a contract with the local power plant and get the energy from them directly at a price of 0.25 yuan (us$0,04) per kWh.
Mining-farm Chinese Alexander in Chelyabinsk
Due to the heavy industry of the Soviet era in Russia there is no shortage of cheap electricity. Sergey Repetek, Deputy Director of the Institute of Economics of natural monopolies of the Ranepa under the President of the Russian Federation, earlier told reporters that even in peak periods, more than 40% of the capacity in the country is uncalled for.
Now, according to media reports, in the Leningrad region are preparing to launch Russia’s largest data center for mining.
Russia’s neighbour Mongolia is also trying to attract Chinese miners, offering wind energy at affordable prices. According to insiders, this year a high-ranking Mongolian officials met with leading Chinese figures in the field of kryptonyte and invited them to engage in mining in Mongolia.
Latin America and South-East Asia with cheap sources of electricity refer to the Chinese miners.
However, moving to other countries is not a guarantee of a bright future. There are scams claiming to help the miners to engage in legal business in Russia, and calls invented electricity prices. Miner Huang Du said that he was left with nothing after he contributed to the creation of a mining-farm.
Miner Alex advises:
Work exclusively with local traders, trustworthy. My wife is Russian. Her family was able to set me up with reliable partners, who performed most of the work, saving me a lot of effort.
With regard to the position of local authorities, then, according to Alex, “is no outright ban, but help from them is not worth waiting”. He says:
If you manage to find partners, they will take over the interaction with the authorities. At least the situation is better in Russia than in China.
According to the materials of 8BTC