Chinese Bitcoin Miners Explore Relocating Abroad Amid Fears of Crackdown

[minerich]

Also Read: China’s Central Television Warns of the Risks of Cryptocurrency OTC Trade Last week, a circulating document indicated that the state-owned power company in China’s Sichuan province would be mounting a crackdown on bitcoin mining. Chinese miner, Akira Cui, recently told the South China Morning Post that many miners “have already paid visit to Vietnam, Laos, Thailand, Russia and the US, negotiating electricity prices with local authorities and buying sites for future use.”.

Mr. Cui argues that “the [mining] business blueprint is bound to go overseas, even if there’s only a 1 percent possibility that China’s crackdown against bitcoin would extend to mining.”. The South China Morning Post states that it contacted four major mining companies, with Mr. Cui being the sole respondee.

Representatives of Chinese mining companies seldom speak with media as many miners are reported to strike private deals with local power companies that are concealed from higher-ranking officials and institutions. Curiously, Mr. Cui forecasts that China’s cryptocurrency crackdown may ultimately serve as a positive for the bitcoin community at large.

Similarly, Mr. Cui believes that the Chinese crackdown on cryptocurrency exchanges will lead to greater decentralization, stating “it’s abnormal to have exchanges globally, as any centralized institution goes against the cryptocurrency’s very nature.”. What impact do you think a crackdown on mining will have now that many Chinese miners are exploring relocation?.

https://news.bitcoin.com/chinese-bitcoin-miners-explore-relocating-abroad-amid-fears-of-crackdown/

[QuintLeo]

"We are in discussion with partners in Los Angeles"

 ROFLMAOSC

 Dude, Southern California is a HORRIBLE place to try to do cryptomining in - VERY high electric costs....

[Metroid]

I guess it comes down to private contracts with power companies. I don't think they will get lower than $0.10 per kw.

[QuintLeo]

In the LA area they'll be lucky to get TO 10 cents/kwh even at industrial rates - LA has to import GIGAWATTS to support the folks LIVING there, they don't have power surplus.

 If a group wants to set up in North America, they need to be looking at areas with surplus Hydropower - Central Washington, perhaps TVA area, Labrador, Quebec - that keeps local electric rates low.

[dagarair]

"We are in discussion with partners in Los Angeles"

 ROFLMAOSC

 Dude, Southern California is a HORRIBLE place to try to do cryptomining in - VERY high electric costs....

HAHA Cali yeah right.  All you find is high rates and hippies!

The Chinese are not stupid.  They would be looking at Washington, Montana etc where you can get big ass farms going for 5cent or less.  I bought a system that ran for a month in a Chinese farm.  OMG it looked like they shoved it up Godzilla's ass before sending it.  It was disgusting dirty.  And all the dates on the cards etc did prove it was only in that farm about a month.

[Serg_777]

Hi
How to find and invite to Russia these miners, we have little equipment, but a lot of cheap electricity.
Our company located in Russia, we have 1 MW of electricity for the price of 4 rubles per 1 kilowatt or 0,066 cents and put the planned gas-piston plant for producing electricity out of gas with the cost of 1.5 rubles per kilowatt or 0.025 cents per 1 kilowatt.
Currently working on Bitfury 28-nm machines.

[senseless]

"We are in discussion with partners in Los Angeles"

 ROFLMAOSC

 Dude, Southern California is a HORRIBLE place to try to do cryptomining in - VERY high electric costs....

LA has a bunch of companies registered there and a lot of connected people... I suspect I know who their "partners" are, and their "partners" have mines located in Washington. If i'm right, one of their "partners" is a director in the bitcoin foundation.

[xenomorphe1]

I think if they have to relocate in other countries, mining may become more expensive as the salary of people is going to be more expensive and the electricity may cost more. Also they will have to pay for the new mining place and move everyhing which can cost a lot of money. But i don't know how they will be able to come back to China? Does the Bank in China are going to accept the transfer of the money to their account in China? It is going to be a big problem if everything is controlled by the government. The business of cryptocurrency maybe is going to be dead in China. Thoses companies have to think very well if the investment is going to be profitable and if they can profit of what they are going to earn.

[senseless]

I think if they have to relocate in other countries, mining may become more expensive as the salary of people is going to be more expensive and the electricity may cost more. Also they will have to pay for the new mining place and move everyhing which can cost a lot of money. But i don't know how they will be able to come back to China? Does the Bank in China are going to accept the transfer of the money to their account in China? It is going to be a big problem if everything is controlled by the government. The business of cryptocurrency maybe is going to be dead in China. Thoses companies have to think very well if the investment is going to be profitable and if they can profit of what they are going to earn.

They'll open a company and accounts in hong kong. Cash out to their HK accounts, then transfer from there to CN. A lot of HK banks don't want to deal with mainland chinese because so many are doing this and NOT doing any real business in HK. But, when you're talking about millions, it's easier to get approval and accounts opened.

[Serg_777]

But to carry the equipment, buy or rent premises it also costs money and if all go EN masse to the United States, she will quickly figure out how to regulate and at the same time press your taxes, so consider and Russia. Colleagues we are waiting for You. We have winter, a lot of electricity and gas. I broke up with 0 on the street direct access to the machine with a standard 20 issued Th 31.2 Th And if it is winter, so all 35 th give.

[iminethereforeiam]

Curiously, Mr. Cui forecasts that China’s cryptocurrency crackdown may ultimately serve as a positive for the bitcoin community at large.

Can't agree more with this part!

[QuintLeo]

HAHA Cali yeah right.  All you find is high rates and hippies!

 And certain areas lots of Vets and Navy/Marine types.

 San Diego manages to be overall quite conservative despite being in California - though it's the only LARGE chunk of Conservative in California.
 Pendelton, 32'nd Street, Coronado, Miramar, Point Loma, MCRD (part of which used to be NTC), and all the smaller bases and the folks that RETIRE to San Diego after having served at one or more of those bases distort the demographics of the area a LOT.

 8-)



 I AM aware that there are large mining companies with HQ in California (the late Zoomhash comes to mind) that had mining operations in Central Washington - I just find it funny that LA is mentioned by the article, seems to have been yet another case of "poor fact checking".


 As far as money transfer goes - you people aren't thinking.
 They're MINERS, they just don't cash out a large chunk of their Bitcoin/Litecoin/ETH/other cryptocoin into yuan, and use THAT to fund their "other country" expansion by cashing it out into THAT COUNTRY'S currency.
 No bank needed AT ALL.

 They DO have to worry about "immigration" restrictions in at least some cases though - but if they demonstrate they're bringing in a large net worth of cryptocoin with the intent of building a large "local business", that tends to get rather easier.
 Most countries LIKE having "rich" folks move in.

[nerdralph]

Hi
How to find and invite to Russia these miners, we have little equipment, but a lot of cheap electricity.
Our company located in Russia, we have 1 MW of electricity for the price of 4 rubles per 1 kilowatt or 0,066 cents and put the planned gas-piston plant for producing electricity out of gas with the cost of 1.5 rubles per kilowatt or 0.025 cents per 1 kilowatt.
Currently working on Bitfury 28-nm machines.

There are a few places in North America with even lower power costs than that.  Under US2c/kWh ($20/MWh) can be found in the Pacific Northwest, and recently prices in Alberta, Canada have come close to that.  Labrador, Canada has prices of under CAD 2c/kWh.  At current exchange rates, that's less than US1.5c.

To make it worth the risk investing in a dictatorship like Russia, prices would need to be much lower.

[senseless]

Hi
How to find and invite to Russia these miners, we have little equipment, but a lot of cheap electricity.
Our company located in Russia, we have 1 MW of electricity for the price of 4 rubles per 1 kilowatt or 0,066 cents and put the planned gas-piston plant for producing electricity out of gas with the cost of 1.5 rubles per kilowatt or 0.025 cents per 1 kilowatt.
Currently working on Bitfury 28-nm machines.

There are a few places in North America with even lower power costs than that.  Under US2c/kWh ($20/MWh) can be found in the Pacific Northwest, and recently prices in Alberta, Canada have come close to that.  Labrador, Canada has prices of under CAD 2c/kWh.  At current exchange rates, that's less than US1.5c.

To make it worth the risk investing in a dictatorship like Russia, prices would need to be much lower.

And if you're willing to go a little higher on that price (up to 0.04/kwh); it would be possible to find locations all over the USA. It also helps speed setup if you're willing to pay a little more as you will be in a more developed area with existing infrastructure you can make use of..... Instead of a lot of nothingness like the areas of WA where these mines are located. In WA you'd have to pay high connection fees, build the building, run lines, etc... In KY I can rent warehouses that already have multi-MW transformers, receive their power at transmission voltage, and have multi-mw distribution ready for you. You just need to install your 480 -> 240 (or 220, etc) step downs, setup racks, run lines to your 400-600A distribution panels, and then 30-40A lines to each rack where you have your outlets and rack distribution.

[Tidsdilatation]

My guess somewhere in Europe would be the best choice. No risk, low energy cost. US would be horrible, unstable country, shit economy and bad infrastructure for power.

[QuintLeo]

There are a few places in North America with even lower power costs than that.  Under US2c/kWh ($20/MWh) can be found in the Pacific Northwest

 Under 3 all costs considered, not under 2.
 Might be under 2.5 though if you're on the scale that Gigawatt is building at.



 MOST of Europe has very high energy costs - there are a few areas that have significant hydropower, but only a few small ones.

 US is NOT an "unstable country" especially by EUROPEAN standards - consider events in places like Spain, Russia, Greece, France, and the like before you go trying to tar the US with THAT brush.
 We're also STILL the strongest economy in the world by a WIDE margin, and our power infrastructure in MOST areas is quite good.


 BTW - if you get away from Wenatchee specifically, there is a significant number of existing buildings that are FINE for use by miners.
 It you're getting in to the Megawatt and up range, you are probably going to have to build infrastructure almost ANYWHERE you go - I'd really like to see these alleged "warehouses (PLURAL)" in KY that have multi-megawatt "ready for you", I'd bet that's an abberation NOT the norm.

 You might also want to look at the reasons Gigawatt moved AWAY from the "big warehouse" type mining setup - starting with "can't get enough airflow through the building" to keep stuff cool.


 Finding industrial-level rates in the under 5c/kwh range is NOT all that easy, if you count in ALL of the costs of that power. Under 5c BASE rate, sure - but then factor in load fees, taxes, meter charges, transmission fees, fuel surcharges, the other stuff many or most utilities add in on top of the base rate and you find the REAL rate goes up a lot in most cases.

 

[Basmic]

Hi
How to find and invite to Russia these miners, we have little equipment, but a lot of cheap electricity.
Our company located in Russia, we have 1 MW of electricity for the price of 4 rubles per 1 kilowatt or 0,066 cents and put the planned gas-piston plant for producing electricity out of gas with the cost of 1.5 rubles per kilowatt or 0.025 cents per 1 kilowatt.
Currently working on Bitfury 28-nm machines.

Who in their right mind would go to do business in Russia. It is not reasonable. First in Russia there is uncertainty with the legislation concerning cryptocurrencies. Secondly, Russia is not the best situation with criminals. All this makes very risky the work of miners in Russia. The Chinese have long inhabited the far East of Russia and in spite of that not in a hurry to carry mine there.

[QuintLeo]

Hi
How to find and invite to Russia these miners, we have little equipment, but a lot of cheap electricity.
Our company located in Russia, we have 1 MW of electricity for the price of 4 rubles per 1 kilowatt or 0,066 cents and put the planned gas-piston plant for producing electricity out of gas with the cost of 1.5 rubles per kilowatt or 0.025 cents per 1 kilowatt.
Currently working on Bitfury 28-nm machines.

Who in their right mind would go to do business in Russia. It is not reasonable. First in Russia there is uncertainty with the legislation concerning cryptocurrencies. Secondly, Russia is not the best situation with criminals. All this makes very risky the work of miners in Russia. The Chinese have long inhabited the far East of Russia and in spite of that not in a hurry to carry mine there.

 It would be perfectly reasonable for Russians - but I certainly would not be interested in moving there to mine if I wasn't a local.

[dagarair]

yep Quint is correct, but the best chance of some government or branch there of not seizing your stuff because you pissed off a nephew or something is America.  You go up north to Montana, Washington and get sub 5 cent electric and people flock there.  While there is better areas in the world as far as cost, I don't think there is a safer area to park your equipment.  Just my 2 Kw.

oh and as team America world police would say "America, FUCK YEAH!"   

[QuintLeo]

Canada should be a match on the "stuff taken for no reason doesn't happen much" level with the USA.
Most of Western Europe as well, but then you run into power costs in most of Europe are just bad.

 Thing to keep in mind about Montana - it's either mountains, totally empty flat to gentile rolling, or Billings (and Billings isn't all THAT big a city).
 Most of that state makes the wheatfield plains of Kansas/Nebraska/Colorado look EMPTY.