Coronavirus Drawback to Crypto Miners in China

Cointral Marketing Manager
Coronavirus Drawback to Crypto Miners in China

Due to the coronavirus epidemic, which has been on the global news lately, the Chinese Government has taken measures to stop the spread of the virus to large scale. However, businesses in the country are exposed to an outbreak. According to the quarantine rules in the country, people cannot go to their jobs.

This has also affected cryptocurrency miners. Due to the epidemic, most transactions came to a halt. On February 4, 2020, CEO Jiang Zhuoer stated in a message sent via the Chinese social networking platform Weibo that they decided to stop the operations because all mining devices are located in remote areas of China.

When we look at the message sent by Zhuoer, it is seen that the quarantine greatly hinders the working conditions of the company employees. Another issue that Zhuoer underlined was that the maintenance personnel did not leave this area before the quarantine period.

After-sales Services are Delayed

Miners who continue their work within the borders of the People’s Republic of China benefit from cheap electricity in regions such as Sichuan, Inner Mongolia, Yunnan and Xinjiang.

Bitmain and Canaan Creative companies are known as China’s leading mining chip manufacturers. Bitmain produces the 65% of cryptocurrency mining equipment located around the world.

Even such important firms report delays in after-sales services due to the coronavirus outbreak. According to the statements made, it is stated that there will be delays until February 10.

Less than 100 days left for Bitcoin Halving. Some cryptocurrency analysts believe that the virus outbreak in China can cause a serious price movement.

Coronavirus epidemic and Bitcoin block reward halving events intersect. Various mining companies are concerned that the combination of these factors will hinder mining equipment, maintenance and delivery processes. If you want to be aware of crypto news, you can follow us on our social media channels and on our website.

Investment information, comments and recommendations contained herein are not included in the scope of investment advisory. Therefore, making an investment decision based solely on the information and comments contained herein may not produce results that are in line with your expectations.