After the miners crossed the border: a new "mining disaster" in Southeast Asia

Amid the domestic regulatory winter, Chinese miners who have gone overseas are facing new "mining accidents" in Southeast Asia.

According to Bitcoin.com and Lieyun.com, in Myanmar, Vietnam and other places, even with low electricity costs, Chinese miners still face high parts and operating maintenance costs . The hardware maintenance costs and downtime losses incurred by mining in Cambodia are basically about three times that of China.

In addition, the intermittent power supply and frequent power grid failures in Southeast Asian countries have directly affected mining revenues, resulting in rising costs and efficiency losses.

A Chinese miner's mine in Thailand loses nearly 9,000 yuan per month on average. Compared with other "transit" miners in Southeast Asia, his operating losses are not high.

At the same time, Chinese miners are facing unfriendly local miners and local residents . The regional protection mechanism of local trading platforms prolongs the transaction cycle, and unreliable individual agents have no way to protect their rights. Local traders, mining colleagues and residents report many cases, including pornography, drugs, stealing electricity, hiding weapons, pollution, etc.

Since the central bank halted digital currency transactions in September last year and the Internet Finance Regulation Office issued a document to various regions in January this year, requiring them to actively guide enterprises under their jurisdiction to orderly withdraw from digital currency mining business and regularly report on the progress of their work, China's huge mining industry has gradually begun to shift overseas.

Cryptocurrency miners have been forced to move to other countries - Russia, Iceland, Norway and Canada - due to the rich hydroelectric energy and large mines in these countries.

According to a Bloomberg report in January, Bitmain, which owns the world's largest Bitcoin mining pool "AntPool", is establishing its headquarters in Singapore and also has mining operations in the United States and Canada; the third largest mining pool BTC.Top has also opened a branch in Canada; the fourth largest mining pool ViaBTC has also landed in Iceland and the United States.

Southeast Asian countries such as Cambodia, Myanmar and Vietnam are becoming an alternative option for small and medium-sized mines.

But obviously, even in Southeast Asian countries with almost no regulation, due to unfamiliarity with the region and the natural disadvantage of Chinese businessmen abroad , small and medium-sized mines are unable to bear the burden from all sides, and these pressures may cause a new round of transfers of miners.

In addition, according to the latest research report data from CITIC Securities, the difficulty of blockchain mining has risen by two levels this week as the end of the period approaches, and the probability of successful mining by miners continues to decline. As the difficulty of mining continues to escalate, the cost of mining will only increase. Large miners still have sufficient risk mechanisms and funds. Where will small and medium-sized miners go next?