China’s Crypto Crackdown Sparks Thai Crypto-Mining Boom
Pongsakorn Tongtaveenan, a Thai entrepreneur, was ready to strike when the ax fell on China’s massive cryptocurrency mines. He quickly purchased redundant computer processors needed to retrieve Bitcoin from the network and shipped them to Southeast Asia.
In fact, as reported by Aljazeera, Pongsakorn told Al Jazeera, “Chinese miners got rid of their machines, and the price fell by 30%.”
The new “miners” – the computer hardware that solves the complicated arithmetic riddles that release the Bitcoin rewards from the network – are now worth more than $13,000.
Due to worries that virtual currencies were “breeding illicit and criminal activities” and presented a threat to the “economic and financial order,” Beijing banned all cryptocurrency trade and mining in September.
The crackdown forced some of the world’s largest Bitcoin mining operations to look for new bases with more favorable regulations and the necessary ingredient of low-cost electricity to power thousands of computers around the clock.
The biggest companies packed up and relocated their operations to the United States, mainly Texas, as well as Malaysia, Russia, and Kazakhstan.
However, for many smaller miners, the aim was to claw back some money on their suddenly useless machines in order to avoid incurring the wrath of China’s autocratic authorities.
Conclusion
Many of Thailand’s larger investors are keeping a close eye on neighboring Laos, which is quietly embracing the rise of cryptocurrencies.
According to a 2020 study by internet and social media analysts We Are Social and Hootsuite, the poor, officially communist country of 7.2 million people has an internet penetration rate of just 43%.
However, it has the advantage of a plentiful supply of cheap electricity generated by dozens of mega-dams.
“More than 95% of electricity produced is for export,” an expert on Laos’ crypto regulations was also reported by Al Jazeera, with sources requesting anonymity that, “The excess must be used otherwise it is a big waste for the government.”
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