Higher cryptocurrency prices have recently restored interest in digital coinage in Vietnam. Crypto mining is once again seen as an investment opportunity, with other options being limited by the ongoing coronavirus pandemic affecting the Asian country.
Vietnam’s Crypto Mining Rigs Spike Sales and Prices in September
Demand for crypto mining equipment has increased in Vietnam following the market rebound that saw the price of BTC climb back above the $ 50,000 mark, Vnexpress reported. The prices of hardware used to mint Bitcoin, Ethereum and other cryptocurrencies have also increased as many Vietnamese miners are now looking for mining components.
Speaking to the online newspaper, Quang Thuan, owner of several crypto hardware stores in Ho Chi Minh City, noted that the mining rigs market was bleak a few months ago after the leading cryptocurrency fell below 30,000 in July US dollar had fallen. However, he announced that his sales tripled from August volume earlier this month.
According to Le Hung, administrator of a Vietnamese crypto mining group of 80,000 members, two key factors facilitated this recovery. “First, Bitcoin, Ethereum and other cryptocurrencies have seen price increases at the same time and miners have started to make profits,” he said in an interview with the Vietnamese news agency and continued:
Second, the pandemic (Covid-19) has lengthened and reduced investment opportunities, and so more people have chosen to mine coins.
A crypto entrepreneur from Vietnam’s southern Dong Nai province gave further insight into the funds needed to start a mining company now. “It cost me nearly VND 3 billion ($ 130,400) to set up,” said Ngoc Van, who recently built an Ethereum mining facility. “All rigs are new and stable. I hope I can amortize the investment in six months, ”he added.
While Vietnamese miners can buy graphics processing units (GPUs) and assemble their own drilling rigs, they can also buy fully assembled mining equipment, including oil rigs from China, where ongoing crackdown on the industry has shut down numerous mining operations. “On average, a drill rig sells for VND 30 million (US $ 1,300),” said another home improvement store owner in Ho Chi Minh City.
According to Ngoc Van, however, the best-selling devices are equipped with graphics cards from the leading graphics chip manufacturers AMD and Nvidia and are more expensive. The prices for these rigs currently fluctuate between 80 and 100 million Vietnamese dong, or $ 3,500 to $ 4,400. That’s around 5 million dong (US $ 220) more than in mid-August.
Vietnam has yet to properly regulate cryptocurrencies and related business activities. In May of this year, the government in Hanoi commissioned a research group and the Treasury Department announced that it would investigate the matter in depth. Cryptos are not recognized as a means of payment and the State Bank of Vietnam has previously warned of the risks of owning, trading, and using cryptos.
According to Statista data released in February, the country had the second highest rate of cryptocurrency usage among 74 economies studied, driven by remittances, Vnexpress found. A survey carried out by Finder in 27 countries last month found that Vietnam has the highest percentage of crypto owners.
Do you think Vietnam will eventually recognize cryptocurrencies more broadly and regulate Bitcoin-related activities more comprehensively? Let us know in the comments section below.
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