Crypto Mining Rigs Back in High Demand As Prices Rally Again

According to Quang Thuan, owner of HCMC, the sales of crypto mining rigs have tripled in September compared to last month.

For the past few months, not many people saw mining as a viable investment especially when the bear market plunged most crypto prices. However, after the recent rally, folks seem to reignite their interest in mining.

Miners are Back in Business

Mining rigs are simplified computers to solve complex puzzles. They are created from graphics processing units or application-specific integrated circuits. When solved first, miners can earn rewards in cryptocurrencies.

Le Hung who is an administrator of a cryptocurrency mining community has given two critical factors for the demand. First, Bitcoin, Ethereum, and other cryptocurrencies have seen price gains. Thus, miners view this as an opportunity to earn more incentives.

Second, the epidemic has prolonged and reduced investment opportunities—meaning more folks have opted for mining.

According to rig vendors, bitcoin prices have seen mining marketplaces increase and decrease. Hoang Tuan, the HCMC chain computer store owner, remarked that folks currently go to specialized shops to purchase rigs. As expected, the prices are very high.

Chinese Miners are Also Back Online

Previously, the Chinese Government had also issued a mining ban in June. Consequently, miners fled to other countries to set up their operations. Since then, they have been relocating with over 500,000 miner rigs looking for places in the U.S.

Most of them have settled recently, and hence more mining has been taking place. Consequently, the demand for mining rose, thus explaining the need for mining rigs. Immediately after the ban, the price of one mining rig was about 700 yuan, from 4,000 yuan.

The most selling equipment consists of AMD or Nvidia graphics processing units. Van stated their rates are now VND 80-100 million, about VND 5 million above mid-August.

Miners can acquire processing units of graphics and assemble plants or buy already built plants themselves. In the Vietnamese market, Chinese mining rigs are also available.

Still, Vietnamese Government Still Hesitant

February’s statistical data showed that, among 74 surveyed economies, Vietnam had the second-highest crypto-currency rate, driven by remittance payments.

The Government of Vietnam has been skeptical about the cryptocurrency industry. The Finance Minister warned the public that the Government did not regulate crypto in that country before this year. In 2018, Vietnamese authorities had prohibited bitcoin as a means of payment. In addition, they urged that the citizens avoid cryptocurrency.

In August, the same market achieved the highest crypto acceptance rate among 26 other countries despite the hesitancy by the Government. Although the country has been the 53rd largest economy based on gross domestic product, it ranks 13th in Bitcoin’s generated earnings for 2020.