Between April and October, some crypto-miners in China go to provinces or cities where it is not raining in order to mine without spending large sums of money.
The rainy seasons in China have generated internal migrations.Cryptocurrency-miners groups in that country are looking for more electricity to place their equipment.
By having the right equipment for mining, miners can get higher amounts of cryptocurrencies. There is different equipment, but one of the characteristics they have in common is that they demand high levels of energy.
Chinese crypto-miners migrate during one season per year. They seek to save as much money as they can in order to mine cryptocurrencies as much as possible as well. For this reason, they travel to provinces or cities where it is not raining. This way, they save a lot of money on electricity.
In China, the price of electricity servicevaries in each city, just as the weather also varies in different cities. In the southern provinces, electricity can cost 0.25 Yuan. But in regions like Xinjiang and Neimonggu, it costs about 0.35 Yuan.
Although the difference seems minimal, when it comes to large-scale consumption the inequality is more evident and that is why cryptocurrency miners seek to save money as much as possible, because during the rainy season companies usually increase the cost of the service.
Xinjiang is a Chinese province that has the largest cryptocurrency mining field in the Asian country. Due to the migration trend that has been registered, the authorities probably monitor the situation to take any decision or regulation in this regard, if they consider it necessary.
Until now, the authorities of each province have issued different documents that limit the construction of local mining fields. It should be remembered that, currently, there are other limitations in China for mining, even though previously the Government approved the construction of mining fields.
The regulations of the Chinese authorities affect miners who have large quantities of machines. For them, it is difficult to move the equipment from one region to another, so if they do not mobilize their machine, they could not avoid the high costs of electric service.
But also, the regulations imposed by the Chinese authorities can affect the cryptocurrency market.
If these regulations cause cryptocurrency mining to decrease, the creation of tokens would be difficult, which could lead to a significant difference between supply and demand on the crypto-market. This could generate an increase in the price of these digital assets.
Besides, those who are part of the cryptocurrency community would be directly affected. They would be affected economically. They may be unable to avoid the losses that the cost of electricity implies.
In case the creation of mining fields is restricted, those who mine cryptocurrencies would have to rent private sites where they can work with their machines to mine cryptocurrencies.
Cryptocurrency mining is one of the most effective methods to get these digital assets; thus, the community is attentive to the decisions that the Chinese authorities make on the issue.
By María Rodríguez