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Chinese crypto miners put operations on hold due to coronavirus outbreak

By Yana Berman

Mining facilities are affected by the outbreak like many other businesses in the country

The Chinese crypto mining industry is affected by the coronavirus outbreak, as with any other business in the region. The mining facilities have been forced to temporarily halt activities while people are unable to reach their workplaces due to quarantine control.

China is home to mining farms that are very energy consuming because in some of its regions, such as Mongolia and Sichuan, electricity is quite cheap.

According to recent research, China dominates Bitcoin mining with 65 per cent of the Bitcoin hash rate originating from this country.

However, as the quarantine spreads, giant mining farms are being forced to close. For instance, a mining farm called BTC.top, located in a remote Chinese region, shut down recently. Its CEO Jiang Zhuoer revealed in his Weibo that all of its mining machines were dropped.

Moreover, major Chinese mining chip manufacturers, such as Bitmain, Canaan, and MicroBT, are also halting their operations due to the outbreak. All manufacturers made public announcements on production delays until February 10.

Meanwhile, Bitcoin will face its next halving within a few months. If the coronavirus continues to spread, the mining industry will be heavily affected. The outbreak could seriously affect the price of the world's major cryptocurrency.

In the meantime, Bitcoin is seemingly enjoying a bullish run, as it broke through the $9,800 mark yesterday. At press time, the currency is up 1.52 per cent to $9,777.

FURTHER READING: Bitcoin halving: could it reach $170K per coin?

FURTHER READING: Anticipation grows ahead of Bitcoin halving

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