Many miners were compelled to halt operations and migrate as a result of China’s mining crackdown. Another group of miners, on the other hand, is aiming to shift to new, more efficient mining plans in order to stay in business in the country. These miners are now looking at lesser-known tokens and proof-of-stake-based systems as options to continue their job without government control.
Miners in China are shifting their focus to other crypto-related activities.
The government’s recent mining and trade crackdown in China has impacted the lives of thousands of miners who have been forced to halt their operations as a result of the government’s new laws. While many of them are looking to relocate to other nations, another group is looking for innovative ways to stay in business in the country.
One of the group’s main priorities is the new wave of storage-based tokens. One of the first crypto-related events after the crackdown was the Web 3.0 Blockchain Application Cum Computing Power Overseas and Distributed Storage Conference in Chengdu. Some of the miners in attendance expressed interest in Filecoin, claiming that it was a safer bet due to its less energy-intensive mining procedure. Filecoin, according to another miner, is a “grey area business that hasn’t yet received regulators’ attention,” which explains the appeal.
Swarm, a currency with the same proposition as Filecoin and Chia, is another storage-based token that has piqued the interest of these miners.
Miners are still hesitant to take action.
These miners, on the other hand, are the boldest of the group, as the Chinese government may soon target these new coins. According to analysts, some miners are still on the fence, waiting for the government to take action. However, the signals aren’t looking good. Due to electricity constraints, Anhui, a Chinese province, stated last week that it will tighten down on bitcoin mining operations in the region.
According to Tan Weizhe, managing partner of Zhizhen Capital, a huge number of miners are still waiting to transfer to other countries, with the majority of them relocating in October. Weizhe provides mining power migration services and manages a number of crypto complexes in the United States, Australia, and Canada.
The Chinese government is expanding the scope of the test phase of its central bank’s digital currency, the digital yuan, as the crackdown on mining and trading operations intensifies.