After Bitcoin hit an all-time high of $108,135, China has been seeing a lot of increased demand for Bitcoin mining machines from across the world.
Bitcoin Mining Machines Demands Jumps over 30% : Reports From China
According to local media reports, merchants in Shenzhen’s Huaqiangbei electronics hub have seen a surge in sales, with Antminer machines from Bitmain seeing a price jump of over 30% this year. Popular models are reportedly selling for as much as $5,600 and are now out of stock. Buyers from countries including Russia, the U.S., and Canada have been purchasing machines in bulk, with some buying hundreds or thousands of units at a time.
A merchant revealed, “Now is just the early stage of the Bitcoin bull market, and next year will be the real bull market. By then, mining machines will also usher in a bull market, prices will rise further, and shortages will become even worse.” He said that its Canadian customers are mining locally, and the electricity bill is only equivalent to RMB 0.37 per kilowatt hour, so they can definitely make money. “I opened a mine in Russia to mine Bitcoin. I have hundreds of machines. The electricity cost there is only more than 20 cents, which is very cheap. I earn 12,000 yuan a day.”
Cai Zhichuan, president of the Hong Kong Blockchain Society, believes Bitcoin’s rise is owing to factors such as its scarcity and Trump’s pro-Bitcoin stance. He noted that over 19 million of the total 21 million Bitcoins have already been mined, leaving fewer than 2 million available. Cai believes Bitcoin could surpass $200,000 next year and possibly reach $1 million within a few years.
This bullish run was also a direct effect of the ‘Trump trade’ phenomenon as US President elect Donald Trump’s advocacy for Bitcoin has further fueled market optimism. His appointment of cryptocurrency supporter Paul Atkins as SEC chairman proved to be an added advantage for the market as institutional investors continue to increase their Bitcoin holdings in the form of traditional exchange traded funds(ETF).
China’s 2021 ban on virtual currency mining has shifted mining machine transactions overseas. Merchants in Shenzhen now re-export mining equipment through Hong Kong to meet global demand. With Hong Kong’s well-connected logistics network, mining machines are easily shipped worldwide, making it a key hub for the quickly advancing Bitcoin mining industry.
Also Read: Putin: Russia Is a Bitcoin Mining Leader, 54K BTC Mined in 2023
