How the Coronavirus Epidemic Affected Mining

Chinese miners control 70% of bitcoin mining, so the coronavirus epidemic obviously affects the cryptocurrency industry. Quarantine in China affected the cost and transportation of equipment, but overall the situation remains under control.

How the Coronavirus Epidemic Affected Mining

At the end of January, Chinese miners claimed that the coronavirus did not affect the industry since most mining farms are located far from densely populated cities. However, a week later, the Chinese authorities decided to close one of the farms belonging to the BTC.TOP pool. 

The head of the pool, Jiang Zhuoer said that the police demanded that the mining farm be shut off supposedly to prevent the spread of coronavirus. However, according to him, the enterprise continued to work and was not forcibly disconnected from the mains. Zhuoer says today are similar precedents were at other facilities, despite the fact that they have a special operating mode. 

All employees of the enterprise, according to the head of the BTC.TOP pool, are regularly checked for symptoms of the disease, and to prevent infection, the staff does not leave the premises and does not contact outsiders. Nevertheless, Zhuoer suggests that if the authorities decide to disconnect the miners, they will immediately do so. If that happens, the manager fears that many ordinary workers will "die of poverty without becoming infected with the coronavirus." 

Rising prices for ASIC miners 

Canaan, one of the largest manufacturers of mining equipment, has also been affected by a coronavirus. Sales Director Chen Feng expressed the assumption that they are the ASIC-miners can rise in price in the coming months because of quarantine in China. 

It should be noted that Canaan is the first mining equipment company to go public IPO on the Nasdaq exchange. In December 2019, its shares lost about 40%, but on February 12 they showed an increase of more than 80%, although before that they could not keep up with the increase in cryptocurrency prices due to the coronavirus epidemic in China. Experts associate the “pump” with the news about the reduction in the number of people infected with the virus and the launch of enterprises in the People's Republic of China that preceded the jump in stocks. However, the very next day, securities began to fall, as statistics on sick and dead from coronavirus worsened. 

In addition to Canaan, giants such as Bitmain, Innosilicon and MicroBT sent notifications of delays in the supply and production of equipment to customers. Logistic collapse entails a shortage of equipment and, accordingly, an increase in its cost.