Bitcoin Mining Hardware May Rise in Price Due to Coronavirus Controls
The price of bitcoin mining machines is expected to rise in the following two months due to the coronavirus quarantine in China which is home to top crypto mining hardware manufacturers.
Leading manufacturers of crypto mining hardware including Bitmain, Canaan, Innosilicon and MicroBT have all notified customers their production and shipments would be delayed because of the coronavirus outbreak.
Chen Feng, sales director of Canaan, told 8btc that the outbreak has affected mining hardware makers in three ways – first, big mining machine manufacturers have few rigs in stock and mining machines’ price will accordingly rise in February and in March; second, production has been affected, as factories cannot resume work for the time being and most will postpone reopening until February 10-15 and even more late to help prevent the spread of the virus; third, deliveries have been delayed as most cheap logistics have been suspended.
Miners running bitcoin mining farms are also having a tough time. According to Jiang Zhuo’er, founder of mining pool BTC.Top, transport and supplies have been cut off in Xinjiang where most mining machines are concentrated, people cannot easily get out or get in, whoever goes into xinjiang have to isolate themselves for 20 days, companies cannot resume work.
“We left half of the staff on duty before the Lunar New Year holiday, with strict controls we are now shorthanded.”
At present, broken machines cannot be returned for after-sale service, but only rely on maintenance personnel in the farm with some parts from badly broken rigs which can still be used, fortunately, power supply and network are relatively stable in Xinjiang, the hashrate of the bitcoin network didn’t see any drop, a mining farm owner said.
As of press time, the pneumonialike virus, emerged in Wuhan, a central Chinese city, has infected more than 20,000 people and killed 426. On the bright side, 669 patients with coronavirus have already made full recoveries. According to officials, most of those who’ve died were elderly or had other ailments that compromised their immune systems.
As bitcoin mining is usually located in isolated rural areas, mining operations are intact for the time being. It remains to be seen how the coronavirus will impact mining business if companies and factories continue to postpone reopening. The problem is that with the price of bitcoin going up, it may drive up the demand for bitcoin mining machines, plus the bitcoin halving effect, while most mining hardware makers have not yet resumed work.