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Cryptocurrency : Bitmain suspends ASIC sales amid mining chaos in China

The manufacturer of ASIC equipment for Bitcoin mining, Bitmain, suspends sales of the same. The company’s move was driven by pressure from the Chinese authorities against cryptocurrencies in general. It should be remembered that Beijing stepped up measures against trade and digital mining within its borders.

Consequently, the creator of these teams specialized in the generation of cryptocurrencies, stops their commercial activities. One of the reasons given by the company for this is to lower the selling pressure in the secondary market. In other words, used equipment prices are bottoming out as everyone wants to get out of it.

It should be noted that Bitmain is the main manufacturer of this equipment. The firm is ranked number one in sales and has a considerable advantage over its competition. Other major manufacturers are MicroBT, Canaan Creative and Ebang. All these companies are Chinese and the pressure to sell in the secondary market is affecting them.

Why is Bitmain suspending mining sales?

At the moment Bitmain suspends the sale of its mining products, three conclusions can be drawn. The first is that the company fears retaliation from the Chinese authorities for trading in products that are closely related to cryptocurrencies. The second is that their sales do not report profits due to the fall in the prices of ASICs in the secondary market.

The third conclusion is that the manufacturer’s decision is motivated by both reasons. In any case, the only certainty that exists is that the company will not be offering its new products indefinitely. Consequently, miners in other parts of the world will be forced to settle for used equipment.

It is a reality not very different from what was lived before Bitman’s decision. It should be taken into account that the orders from the large mining companies and the shortage of semiconductor chips kept stocks empty.

Something that does cause a real impact is the fall in the prices of mining machines in the secondary market. This is because the authorities will exemplarily punish anyone caught mining cryptocurrencies. Therefore, the owners are getting out of them at auction prices. The news that Bitmain suspends sales of its products adds to a bigger problem.

Bitmain, the most important of the ASIC manufacturers, suspends the sale of its products.  Source: BitmainBitmain, the most important of the ASIC manufacturers, suspends the sale of its products.  Source: BitmainBitmain, the most important of the ASIC manufacturers, suspends the sale of its products.  Source: BitmainBitmain, the most important of the ASIC manufacturers, suspends the sale of its products. Source: Bitmain

The energetic measure of the authorities

In late May, the Communist Party of China decided that Bitcoin mining was “irreconcilable” with the country’s environmental plans. The supposed negative impact of the business on the environment with greenhouse gas emissions was reason enough to ban it.

This June, the offensive began dramatically. The central government ordered the authorities of important provinces to close all companies that were related to mining farms.

At the same time, the main financial institutions were summoned to closely monitor their users. With this, it is intended to prevent any account from being lent to exchange cryptocurrencies for money.

All that avalanche of punitive actions could motivate Bitmain’s decision, which suspends sales of digital mining machines. In their report, company representatives stated that the decision is aimed at “assisting in the smooth transition of the business.”

For their part, cryptocurrency exchanges and pools have also closed operations or reduced them to their minimum levels.

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