Bitmain and Canaan Said China’s Proposed Mining Ban won’t Impact their Operation

[Jating]

I think this is a non-issue, but a great opportunity for Silicon valley to attract Chinese knowledge and expertise to the USA or for any other country for that matter. They can bring a lot of jobs and experience and also generate a lot of taxes for that country, if they can relocate to another country.

This is the only positive things I can think of if ever Bitmain would decided to leave China for good and relocated their mining farms to other countries.

I always look for the positive side to every negative situation and I think we can get a lot of positive things out of this so-called ban in China. 

There's always two side of the story, but we should have the attitude to look at the bright side of everything and not just the negative impact in can bring to us.

[Micerker]

China may issue particular bans to eliminate mining in this country. Bitmain and Canaan can move their divisions to countries that approve it and have cheap electricity to reduce monthly consumption costs. Bitmain and Canaan have a lot of options, so they don't worry about claims from the Chinese government.

[1Referee]

They can bring a lot of jobs and experience and also generate a lot of taxes for that country, if they can relocate to another country.

Don't believe in fairy tales.

These entities value their profit margins more than the coin they mine or the country they operate in. They'll pretend to create jobs and whatnot, but the reality is very different, and we have seen that already in countries such as Canada and certain states within the US. Miners were allowed to settle there in return for job creation, but nothing of this actually happened.

The fact that we still talk about Bitmain shows that a lot needs to happen for it to be overtaken. They are losing dominance in the crypto space, but it's quite a slow process. I would have expected legacy entities to be more aggressive, but it seems that they still consider this space to be too much of a risky bet rather than a profitable opportunity.

[pushups44]

Bitmain will have no trouble finding cheap power to run mining farms in the future if they are to get kicked out of China, but there are two substantial costs associated with this: (1) Relocating all equipment and building new farms out, and (2) wherever they move to likely won't provide energy as cheaply as China used to, given that Chinese energy has been subsidized.

I interpret the draft in Chinese law to mean the government is tired of subsidizing electricity for miners who are making billions of yuan.

[Beerwizzard]

It sounds like Bitmain can just remove their pool and farms somewhere abroad and leave their miner-selling business in China, because they still would be able to sell it abroad. The main thing is that they should keep producing miners. If miners are produced then they will find someone, who will make them work.

[kryptqnick]

Correct! But Bitmain is headquartered in Beijing. Probably their operations are scattered all over the world, but the head of the body is placed in China. Probably pulling out of China is the best thing they can do once the Chinese government decides anything negative! As of now, the confusion still holds!

I think Bitmain might be saying that everything is under control while it actually isn't. The mining giant suffered a bad year of 2018 due to the bearish market, and you are probably right that they'll have to relocate. Relocation always means spending even more money, and the new country might not be that favourable in terms or electricity and labour costs. The gov might just not pass the bill, though, and then everything will stay the same. If China really does it, I am not sure whether it will have more positive or negative impact on the industry. But weakening the key player of the mining industry seems like a good thing to do, even if it comes at a certain price.

[pawanjain]

I wonder how China banning mining won't harm the mining industry and especially Bitmain since China hold's most of the hashing power to mine cryptocurrencies.
It might be that Bitmain is playing the 'Bluffing' card so that China decides not to ban mining. Anyway, nothing can be said with guarantees until decision are made by their government.

[Pamadar]

It sounds like Bitmain can just remove their pool and farms somewhere abroad and leave their miner-selling business in China, because they still would be able to sell it abroad. The main thing is that they should keep producing miners. If miners are produced then they will find someone, who will make them work.

With enough funds they can simply do this in order to continue their business, it's not hard since they already successful with this venue they will do everything to protect and to continue as usual, bitmain will operate inside or outside China for their own benefits.

[incomefromcoins]

Most of the mining operations were changed their location to other countries way back from 2017 so probably they may knew earlier this may happen when icos banned took place so mining wont be affected if china bans