Thai entrepreneurs have benefited from the repression against Chinese miners by buying mining equipment cheaply. Pongsakorn says Bitcoin is digital gold since miners receive dividends according to its price, as with the precious metal.
There was a capitulation of miners in China due to the ban on cryptocurrencies in mid-September. The government took strong measures against that industry to prevent operations with those assets in the country. That situation seems to have fueled the growth of retail mining in Thailand.
Thai entrepreneurs and companies alike have benefited from the fact that many Chinese have left the business. The latter is getting rid of their mining rigs, of which the former are taking advantage by buying them cheaply.
The Exodus of Chinese Miners Benefits Retail Mining in Thailand
A Thai Bitcoin enthusiast said they were extremely happy when China banned cryptocurrencies. Thanks to the closure of the mining farms there, he is now one of the miners on the network.
That man, who chose to remain anonymous, claimed that he set up a small solar-powered cryptocurrency mining unit. He said that he had invested around USD 30,000, but he recovered it all in three months.
Pongsakorn Tongtaveenan, another Thai cryptocurrency entrepreneur, opened a resale business of cryptocurrency mining devices. He seems to have been selling many Chinese application-specific integrated circuit (ASIC) miners to small investors in his country.
He explained that the price of ASICs like the Bitmain Antminer SJ19 Pro dropped by 30% due to the departure of Chinese miners. That happened before normalcy returned amid growing local demand.
The Optimism About Cryptocurrencies Drives the Popularity of Retail Mining
According to Pongsakorn, the search for a stable income amid the current pandemic has boosted the popularity of retail mining. In addition, he believes that increased investor optimism about the future of digital assets has contributed to that.
The entrepreneur said that Bitcoin is the gold of the digital world, as many analysts call it. The same as the mining stocks/shares of the precious metal, the miners of the crypto asset receive dividends based on its price.
The outflow of miners from China has benefited the development of activity in Thailand. The United States, Kazakhstan, and Russia, among other countries, have also seen an increase in their cryptocurrency mining operations.
Miners in the United States account for 35.4% of the hash rate distribution in the world. Kazakhstan (18%) and Russia (11%) also join the nations that have gained significant market share.
While the boom in cryptocurrency adoption occurs in Thailand, cryptocurrency mining is growing in popularity. The trading volume of various local exchanges skyrocketed to USD 6.6 million in November 2021. It is relevant to know that the figure was USD 538 million last year.
There has also been notable growth in institutional demand for cryptocurrencies in Thailand. In November, Siam Commercial Bank, the oldest bank of Thailand, invested USD 537 million in a 51% share in the BitKub exchange.
By Alexander Salazar
