China records surge in second-hand crypto mining rigs marketplace listings

Xianyu, the largest online second-hand marketplace in China, reports a significant surge in the listing of bitcoin mining machines from the regions of Inner Mongolia and Sichuan which are considered to be the most productive mining hubs in the country.

The increase in the sale of mining rigs comes in the midst of an intensified crackdown on cryptocurrency mining operations in China as part of its attempt to become carbon neutral.

It can be recalled that Inner Mongolia enacted new legislation that restricts any kind of crypto mining business in its territory and to fulfill carbon emission goals, new regulations were put in place to ban all types of mining operations, large or small.

China as bitcoin mining powerhouse

Currently, China is recognized as the crypto mining capital of the world, responsible for almost 60% of the overall hash power that is fed into the Bitcoin network.

As it boasts cheap and clean energy sources, attaining such status was almost like a piece of cake for the country, resulting in a large concentration of crypto miners.

Being put in the limelight that way, China was not spared with issues, with some people airing their concerns about such mining input coming from a nation with autocratic governance.

This led to the assumption that the recent crackdowns that resulted in the surge of second-hand mining rigs for sale are all part of a strategy to diversify mining concentration and decentralize mining power input.

Will this affect bitcoin?

Despite selling mining rigs and even coin holdings to fund the migration of business to more favorable countries, Global Business Development Vice President Bixin Mustafa Yilham said this should not dissuade bitcoin.

In fact, he believes this is an opportunity to further decentralize bitcoin mining. He also said that even with this, nothing essential about the cryptocurrency has changed.


Image courtesy of Cointelegraph News/YouTube

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