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Cryptocurrency companies are leaving China for a “massive mining transition”

When China vowed to crack down on cryptocurrency mining earlier this summer, Nasdaq-listed Bit Digital Inc. stepped up its efforts to bring more than 20,000 computers out of the country.

The machine is at the heart of a New York-based company that connects powerful computers to inexpensive power sources to make money, solve math problems and unlock new Bitcoins. This process, called mining, has moved from what anyone with a PC could do 10 years ago to a large industry that uses a lot of computers and a lot of power.

Bitdigital and other crypto mining companies face many hurdles as they move machines from countries that used two-thirds of the world’s energy, previously dedicated to Bitcoin harvesting. increase. Shaking the machine can easily damage it, making packing and international shipping difficult. The cost of a new computer is about $ 12,000.

Companies had to decide whether to travel by air or by sea, considering cost and length of transportation. Bit Digital said it still has 9,484 mining machines (or almost one-third of computers) in Sichuan, China, as of June 30. BitDigital Chief Strategy Officer Samir Taber said at the end of September. The company ships machines to Nebraska, Texas, and Alberta, Canada.

The entire process can cost millions of dollars. Oil prices have risen in recent months, and transportation bottlenecks caused by the coronavirus pandemic have skyrocketed fares. Computers entering the United States from China are also subject to a 25% tariff. Besides understanding how to carefully pack and ship machines, businesses need to find a facility that has enough power to move the machines.

Cryptocurrency companies are leaving China for a “massive mining transition”

Source link Cryptocurrency companies are leaving China for a “massive mining transition”

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