China Bitcoin Miners Are Shut Down Due to Corona Virus

The coronavirus epidemic is getting worse. China Bitcoin miners are shut down to contain the spread of the Corona Virus. Some of the main suppliers of mining equipment in the country have decided to postpone their after-sales service until mid-February.

07 February, 2020 | AtoZ Markets – The Coronavirus has blocked China’s economy, mainly in Hubei province. So far, 638 people have died from the virus, according to official data, and nearly 31,500 people are infected. Eighty percent of the Chinese workforce is forced to stay indoors. The companies are hit hard, with markets down 8.2% in the index, the largest decline in five years.

China Shuts Crypto Mining Due to Corona Virus

Bitcoin miners in China are shut down due to corona virus outbreak. Jiang Zhuoer, operator of the BTC.Top mining pool, told on Weibo that his mining facility and several others were shut down by local police, citing the ongoing epidemic. He also added:

 “I have a mine in a remote suburb. The police came and forced all the mining authorities to close. It is understandable to take a regular call and to forbid going out. But what is the point of shutting down the mining machine to prevent the epidemic?”

The exact location of the mining facility cannot be verified. But many comments on the post suggest that it is located in Xinjiang Province, quite far from the city of Wuhan, the epicenter of the epidemic.
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CEO Jiang Zhuoer confirmed that they stopped all the machines at the farm. Jiang said:

 “Maybe all the other factories have been closed, and we are no exception. If this continues, most people will die of poverty before dying from the epidemic.”

According to Zhuoer, it is no longer safe to conduct mining operations. That is why the authorities have advised the firm to cease all activities of crypto-mines. It is a difficult time for mining workers. They never stop their activities before. The authorities order us not to return to work until the end of the quarantine period. Moreover, we do not know at this time how long it would take.”

However, it is not only daily mining operations that suffer the losses. Some of the major mining equipment suppliers in China, such as Bitmain, Canaan Creative and MicroBT, have decided to postpone their after-sales services until mid-February.

Read More: Ripple and Coinbase Advise US Regulators for Crypto-Friendly Policies

Is It Good News for Miners Outside China?

The Chinese government has banned the trade of digital currencies. But the country is still in the lead for bitcoin mining, which estimated at 66% of the total hash rate. In December, local authorities in Sichuan Province also shut down crypto mining due to the shortage of electricity during the dry season.

Despite the closure of Chinese mining facilities, the hash rate of bitcoin mining is constantly increasing, mainly due to the rising prices of digital currency. It also indicates the possibility of an increase in mining facilities outside of China.

In the meantime, some researchers believe that the most anticipated event in the cryptocurrency industry, the halving of bitcoins, scheduled for May 2020. It should trigger a sharp turnaround in price market events. China has to contain the virus epidemic by then. Otherwise, there will be a massive impact on production, maintenance and the delivery of mining equipment, all leading to a drastic reduction in the BTC supply.

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