Hydroelectric generators lower price in China due to flight of Bitcoin miners

Reports indicate that, with the ban on Bitcoin mining in China, the prices of hydroelectric generators are plummeting in the second-hand markets in that country.

Journal South China Morning Post (SCMP) indicated that on popular e-commerce site Xianyu, owned by giant AliBaba, sales announcements of small hydro generators increasewhich can be installed relatively easily to power Bitcoin miners.

In China, permits are granted to local private initiative to generate hydropower.

The hydroelectric generators in question are capable of generating up to 50 megawatts (MW) and operate on the basis of aquatic resources, which are abundant in some regions of China.

These generators are small in capacity, compared to the more than 1,000 megawatts of power typically held by at least some of the world & apos; s large hydropower plants and plants. Even so, these small hydroelectric generators allow to supply power to a profitable activity such as Bitcoin mining.

According to the newspaper, public and private hydroelectric projects have also proliferated in the southwest region, and have been encouraged by the State. However, some operators of hydroelectric generators could have dabbled in Bitcoin mining since, due to lack of permits, they cannot be suppliers of the state electricity system.

The State argues, according to the newspaper, that some hydroelectric generators have caused environmental problems, alteration of the course of rivers and other ecological issues, so that not all obtain permits or must repair the damage caused.

In addition, a source from SCMP stated that, with these small hydro generators, you can mine Bitcoin anonymouslywithout the authorities noticing.

Bitcoin miners migrate from China and industry evolves

So far it has not been reported that this is happening but, on the contrary, as has been reported Crypto News, the exodus of miners from China to other countries is developing, in regions such as North America (United States and Canada) and Central Asia (Kazakhstan and Iran, among others).

But, as with GPU graphics cards, highly demanded by miners of other cryptocurrencies, demand for hydroelectric generators may have fallen in China, causing prices to plummet as well. GPUs have dropped in price also because of China’s bans, Crypto News reported.

Also, not all miners will be able to relocate inside or outside China, or resume operations, so could sell their ASIC equipment in international markets. These exclusive application equipment for Bitcoin mining could change owners, further decentralizing this activity and industry so important to the protocol. It could also increase its availability in other parts of the world.

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