Former Director of Bitmain Mining Farm: Wet Season May Not be the Final Straw for Miners
As Bitcoin starts to make a major leap within the past week, crypto enthusiasts can all take a breath to celebrate the bullish market. Miners can’t wait to turn on their mining devices to make money after a depressing bearish time.
Yu Wei, former director of Bitmain mining farm in China’s far-western region of Xinjiang, China’s most influential operator, demonstrated his view of crypto mining in an interview with a local blockchain media. Yu opposes the rapid expansion of the mining farm and believes that the wet season is not quite the final straw for miners.
As we all know, electricity cost is a key factor in mining profit. Yu was asked about the region offers the cheapest electricity and whether it is worthwhile to move to Iran, the place with electricity as low as 10 cents RMB.
Yu answered that no big enterprise will move to Iran for electricity. It is more important for a mining farm to operate in an orderly way, for example, paying tax and finding a regular electricity supplier, to prevent the mining from being cracked down. He explained:
“Despite the electricity cost is very cheap in Iran, the fix cost of operating a mining farm is quite high. As thus, we should also consider the feasibility of conducting a mining business there. Be aware of the ‘low electricity trap’, local electrical suppliers may drive you away after you put in million dollar worth mining devices, and take over them.”
Yu further added that the wet season in Sichuan can lower the electricity cost, but it is not quite the final straw for miners. As most of the miners haven’t made much of profit through the bear market, it may be too expensive for them to purchase the latest mining devices, for example, Bitmain’s Antminer 17 series, in order to take advantage of the cheap electricity.
At this time, operating old mining machines may be more profitable than buying the new one. Miners should learn to control cost, otherwise, the wet season cannot help much either.