March 28, 2024

Top management of Bitmain and Canaan left China due to coronavirus: transfers of ASIC miners postponed

Due to the coronavirus outbreak in China, top management of local mining companies left the country and are inUSA and Canada.At the same time, large suppliers of ASIC miners Bitmain and Canaan Creative are forced to postpone the delivery of equipment. Zodd Zverev, CTO of the 1Thash&58COIN mining pool, told the ForkLog editors about this.

According to him, the offices and factories of China are quarantined at least until February 10. In this regard, the shipment dates for all manufacturers of ASIC miners have moved.

«The country is almost completely paralyzeddomestic logistics, priority is given to strategic cargo to combat the virus and food. Since going to work is prohibited, and the police strictly check this, the delivery and installation of new ASICs is almost impossible»,- said Zverev.

At the same time, energy consumption has seriously fallen in the country. Zverev suggests that this could cause a shutdown of a number of hydroelectric power plants and lead to the disconnection of mining farms.

A major impact on trade and the introduction of newDeparture from the country of the main personalities of the Chinese mining market, including the top management of Bitmain and Canaan Creative, can also provide capacity. According to Zverev, they plan to return to China not earlier than the end of February - the beginning of March.

Also, according to him, in China the demand forcryptocurrency, since unprecedented measures taken by the state to combat the virus are likely to have an impact on GDP growth and the country's economy as a whole.

«Moving Chinese farms overseas now,Of course, it is not considered like any other activity: exports are severely limited, offices are closed, people are in a deep stupor and panic. When there are armored cars and cordons on the street, there is no time for business and investment.

According to Zverev, in the light of the upcoming bitcoin halving, these events can have a serious impact on the growth rate of the global hashrate, which will positively affect mining:

«Obviously, Bitcoin is unlikely to showdouble growth on the eve of halving, and therefore any slowdown in the introduction of new equipment will help the industry stay in the profitable zone. Even such a terrible and dramatic event as the coronavirus epidemic can contain a bit of positivity.

Meanwhile, the co-founder of the industrial operatorBitCluster mining Sergey Arestov suggested that after recalculating the complexity of the Bitcoin network, which happens every two weeks on average, pools outside of China can increase their profitability.

«If due to the spread of coronavirus inIn China, power plants will close and this will lead to a massive shutdown of ASICs; miners who remain working will double their profitability after recalculating the complexity of the network. The fewer miners in China, the more coins the other participants in the process will produce,— Arestov said in a comment to ForkLog.

He also announced his readiness to «shelter disabled ASICs for “quarantine”» to a 100 MW site in the city of Bratsk:

«The area will accommodate 50,000 devices, and the Siberian climate, where it is now -27, will not allow infection to develop».

Ben Jow, CEO of Bybit, a Singapore-based cryptocurrency exchange, told ForkLog that the impact of coronavirus on the price of bitcoin is difficult to evaluate, but it will definitely affect
Asian stock indices.

«Since until the beginning of February in mostChina's cities require people to work from home, meaning reduced productivity for most companies in the country. Also on February 3, the stock market will open, and we expect a large decline in prices for Asian indices. It’s hard to say about cryptocurrency - Bitcoin is obviously in a bullish movement.

Jo also added that Bybit, among other cryptocurrency sites, donated funds to fight the coronavirus.

Earlier, Binance Exchange CEO Changpeng Zhao announced his readiness to allocate 10 million yuan (about $ 1.5 million) to help victims of the coronavirus outbreak in China.