Crypto Mining – The ban on cryptocurrencies in China has prompted a spike in crypto mining in Thailand, as residents try to cash in on the trend during the pandemic by purchasing Chinese stock of computer processors used in Bitcoin mining operations.
Pongsakorn Tongtaveenan, a Thai crypto entrepreneur, said in an interview with Al Jazeera: “Bitcoin is the digital equivalent of gold. A mining rig, on the other hand, works similarly to gold mining stocks in that you get paid dividends based on the gold price”.
Beijing cracked down on cryptocurrency mining in September last year, effectively shutting down half of the world’s Bitcoin miners and causing a mass migration to cheaper energy pastures.
Texas, Kazakhstan, Malaysia, Russia, and now Thailand have all benefited from the mining migration. According to the Cambridge Centre for Alternative Finance, the United States is now the main destination for Bitcoin mining, with a third of Bitcoin’s hash rate based there.
While this has definitely been a boom to many countries’ economies, it has also resulted in a slew of problems. Crypto miners in Kazakhstan may be putting a strain on the country’s power grid by consuming 8% of the country’s total power generation capacity.
Also Read: Indonesian Student Earns $1 Million By Selling His Selfies
Crypto Mining Now Employs An Estimated 100,000 Thai Residents.
The market in Thailand is progressively opening up to Bitcoin miners looking to acquire and use Chinese crypto rigs. According to Pongsakorn, the price of hardware dropped by 30% when Chinese miners began selling off CPUs due to stricter regulations last September.
Today, new technological machinery to support crypto mining activities costs roughly $13,000, and an estimated 100,000 Thai residents are already employed in the industry.
Also Read: Jack Dorsey’s – Block Officially Building Open Bitcoin Mining System
Thais are rapidly using cryptocurrency. The Thai Securities and Exchange Commission (SEC) said in March last year that it would limit domestic crypto trading to people earning at least 1 million baht ($32,200) per year and reaching an unspecified minimum age, but this was quickly met with public outcry.
To reduce the amount of unskilled retail investors entering the area, the commission is considering putting up a test and training course for crypto investors.