Bitcoin miners began to migrate from China’s north to south for cheaper energy after the block prize halving last month.
According to local news outlets, 8BTC quoted almost all of the cryptocurrency mining farms that operate with the power of thermal power plants in Inner Mongolia and Xinjiang, while 20 to 35 percent of hydropower mining farms are in northern China’s Yunnan, Guizhou, Sichuan province. is currently empty.
As it is known, electricity charges are one of the biggest expenses of miners. Therefore, electricity is a factor that directly affects miner’s revenues. For cheap electricity bills, Chinese miners either have to go a long way or take risks.
Miner migration started in China
With the Bitcoin block rewards dropping from 12.5 to 6.25 on May 12, the issue of electricity has become much more important for miners. Some Chinese miners prefer to go to Iran for a 1 cent electricity fee, while others migrate from North China to South China for cheaper hydro-power at the cost of opposing the free electricity law in the country.
At the mining summit in the Sichuan region, which will last for 1 week, miners often complain about serious difficulties in the conversations among themselves and bad conditions in the industry. According to some miners; Some Bitcoin mining farms in Sichuan have serious shortcomings and require extreme equipment. On the other hand, it is stated that small miners make almost no gains.
Many miners migrate from China to north during this period. It takes 10 to 17 days for a miner to close his thermal power farm and settle on a water powered farm.
The rainy season is now beginning in China. Every year, in the last 10 days of May, hydroelectric power plants in Sichuan area open their lids and release the accumulated water. This period is also the time of migration of miners and equipment.
The electricity price in the inner regions of Mongolia and in Xinjiang is usually 0.35 yuan / kWh. However, this price may decrease to 0.2 yuan in Yunnan, Guizhou and Sichuan regions.
“This year is different from other years”
The Chinese miner Yang Haolin said that most of the thermal power plants in Inner Mongolia and Xinjiang are either closed down or the miners are going south, “This year is different from the others. Many farmers who have made annual contracts with thermal power plants have terminated these contracts. As an example, the M21 makes a profit of 5 yuan a day with the thermal power plant, while its hydroelectric power provides a profit of 15 yuan a day. ” said.
Currently, between 20 and 35 percent of the mining farms in Yunnan, Guizhou and Sichuan regions in northern China are on vacation! The owners of the remaining farms expect the price to reach around 20 thousand dollars after the Bitcoin prize split.