International Market Maintains Demand for Chinese Cryptocurrency Mining Hardware
The future for manufacturers of bitcoin mining hardware in China appears bright despite reports that the Chinese central government will seek to rein in the power consumption of mining companies operating within its borders. Hong Kong-based media outlet, South China Morning Post, has reported that there is considerable international demand for Chinese mining hardware internationally – with Russian buyers representing a significant share of the industry’s demand.
South China Morning Post spent time with Alex, a 38-year-old Russian businessman visiting China to establish connections with bitcoin mining hardware retailers. The report states that Alex spent three days exploring central Shenzhen, where he compared the products offered by 30 different retailers. Alex claims to have had two or three trips to China over the last 15 years to purchase toys that he resells in Russia, however, this is the first trip that he has undertaken in order to purchase mining hardware.
Alex states that when he first entered the bitcoin mining industry he purchased 200 units in Moscow, for which he paid a 20% premium when compared to the Chinese market. He states that there is far more to consider than just the prices of the hardware he inspects, emphasizing that “It’s about how to choose a true retailer [that I trust].”
For Alex, Shenzhen, in particular, offers too many potential retailers to easily choose from.
South China Morning Post recounted exploring the SEG Plaza in Huaqiangbei, Shenzen – a major manufacturing hub that has comprised a Special Economic Zone since the 1980’s.
The report states that the plaza houses “vendors of mining machines scattered between the fourth and sixth floors in spaces originally occupied by sellers of computer components,” noting that “One mining shop had a Russian translation at the bottom of its ad.”
Whilst South China Morning Post article states that “Russians dominate the list of foreign customers,” it is also reported that “Indians and other Europeans” comprise a significant share of the market demand for Chinese mining hardware.