In wake of China’s mining ban, Bitmain has announced that they will temporarily halt the sale of mining machines to keep prices stable. The ban on mining operations in China has caused the value of mining machines to drop drastically. According to a report, mining machines have lost more than 75% of their value since April.
The Beijing based mining giant company has said that the decision was made to protect its customers from the falling prices. Many machines have flooded the resale market. China has seen a sharp increase in miners abandoning and selling their equipment.
China’s Crypto Crackdown
The rush was made due to China’s decision to ban crypto mining in the country. China has one of the world’s biggest crypto mining operations in their hydro powered provinces. Which have very low prices of electricity.
However, last month Chinese authorities announced they were banning all such operations. This has caused a frenzy in China with many crypto miners closing shop and moving their operations to other countries.
The crackdown is not just against the miners. The country’s central bank also banned financial institutions from processing crypto transactions on tuesday. Therefore, causing a sharp decline in the prices of crypto.