Kevin Zhang predicted that by the end of June, about 90% of cryptocurrency mining enterprises in China will cease operations
About 70% of Chinese bitcoin mining companies have already turned off their equipment, Kevin Zhang, vice president of business development at mining company Foundry , said on Twitter.
According to him, by the end of June 2021, about 90% of Chinese miners will completely stop mining digital assets. In Sichuan province, some miners were ordered to completely dismantle infrastructure equipment and mining devices within two weeks, Zhang said.
1) 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”
👇👇
— Kevin Zhang (@SinoCrypto) June 23, 2021
The vice president of Foundry believes that the ban on mining cryptocurrencies in China is a “blow below the belt” for large miners who have received official permission to mine, as well as guarantees from the state.
Zhang argues that small farms that operate illegally are in a better position in this situation and will be able to continue to mine bitcoin for a while.
Chinese miners have already begun to leave China and move equipment to other countries, the Foundry vice president explained.
According to him, this process began even before the provinces of the PRC began to impose bans on the extraction of cryptocurrencies.
Crypto journalist Colin Wu claims that large mining equipment manufacturers will leave China along with the miners.
Bitmain has already suspended the sale of ASIC miners as it plans to completely relocate production overseas. Bitmain executives will also leave China.
There are rumors that Bitmain has cut 5nm chips due to the recent price drop. Due to the sharp drop in the hashrate of the entire network, the shutdown price of S19 has been lower than 7,000 US dollars, so cutting is not ture.
— Wu Blockchain (@WuBlockchain) June 23, 2021
At the end of May, large enterprises for the extraction of cryptocurrencies BTC.TOP and HashCow turned off equipment in China and announced their withdrawal from the country.
Also, the residents of mainland China stopped serving the Huobi and Bybit crypto exchanges .
