Thailand’s Crypto Mining Industry Grows after China’s Ban

The crypto mining industry is reportedly booming in Thailand after China imposed a ban on the mining of digital assets like Bitcoin and Ethereum in the region. According to a recent report published by Al Jazeera, retail crypto miners in Thailand are buying mining rigs in large quantities.

The BTC mining hash rate dropped by more than 50% after China’s ban in 2021. However, large mining companies shifted to other locations like the US and Canada to continue their operations. While big companies selected North America and Europe, small retail miners preferred Southeast Asia for the profitable mining business.

“Bitcoin is the gold of the digital world. But, a mining rig is like gold mining stocks: you’re paid dividends according to the gold price. There are around 100,000 Thai miners now,” Thai entrepreneur Pongsakorn Tongtaveenan told Al Jazeera.

Thailand has witnessed a surge in demand for crypto mining machines during the last few months. As a result, Thai entrepreneurs ordered a large amount of Bitmain Antminer SJ19 Pro from Shenzhen this year.

Crypto Mining

Despite a cut in rewards, BTC mining is still profitable for miners around the world. However, the cost of electricity plays an important role in the overall volume of mining profits. “More than 95 percent of electricity produced is made for export, so the excess must be used otherwise it is a big waste for the government,” an expert on Laos’ crypto regulations told Al Jazeera, requesting anonymity. “They see an opportunity to transform that excess into millions of dollars,” the expert added.

The BTC mining hash rate spiked by almost 27% in 2021, which was mainly due to a jump in retail crypto mining across Southeast Asia. While large companies remained dominant in the global crypto mining industry, small retail miners have gained a fair share in the last 6 months.