China’s mining crackdown forced many miners to cease operations and relocate. But another group of miners are planning to switch to new and more efficient mining plans to continue operations in the country. Little-known tokens and proof-of-stake-based systems are now seen by these miners as a way to continue working away from government supervision.
Chinese miners turn to other crypto activities
China’s recent mining and trade crackdowns have affected the lives of thousands of miners who had to stop operations due to new government policies. Although many of them are seeking to move to other countries, there is also a group of people seeking to switch to new alternatives to continue doing business in that country.
The new wave of storage-based tokens is one of the biggest focuses of this group.Bloomberg confirmed this and attended The internet 3.0 Blockchain Application and Overseas Computing Power and Distributed Storage Conference was held in Chengdu-this was one of the earliest encryption-related events after the suppression. Some miners present are interested in Filecoin and mentioned that it may be a safer bet due to its less energy-intensive mining process. Another miner stated that Filecoin is a “gray area business that has not yet caught the attention of regulators” and explained the interest behind it.
Another storage-based token that has attracted the interest of these miners is Swarm, a currency that shares the same proposal as Filecoin and Chia.
The miners are still hesitant
However, these miners are the bravest, because these new cryptocurrencies may also become targets of the Chinese government in the near future. According to experts, some miners are still in the wait-and-see phase, looking forward to further action by the government. But the signs are not optimistic. Last week, due to power shortages, another Chinese province, Anhui, announced that it would crack down on Bitcoin mining operators in the region.
According to Tan Weizhe, managing partner of Zhizhen Capital, there are still a large number of miners waiting to migrate to other countries, most of which will be relocated in October next year. Weizhe operates computing power migration services and is responsible for operating multiple cryptocurrency complexes in the United States, Australia and Canada.
With the intensified crackdown on mining and trading businesses, the Chinese government has expanded the scope of the testing phase of the central bank’s digital currency, the digital renminbi.
What do you think of the new pivot for Chinese miners to switch to more obscure cryptocurrencies? Tell us in the comments section below.
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