Crypto mining demand surges in Vietnam
As Bitcoin (BTC) surges above the $51,000 mark for the first time since May 2021, cryptocurrency mining in Vietnam has been reviving.
Vietnam’s local news agency VnExpress reported on Monday that the country’s crypto-related enterprises, entrepreneurs and enthusiasts are witnessing a huge increase in crypto mining rigs since BTC has risen.
The owner of a chain store in Ho Chi Minh City that sells crypto miners, Quang Thuan, shared that his company’s sales since September have tripled. Thuan also noted that the mining rig market in Vietnam had been down for a long time and shot up rapidly once Bitcoin started surging to above $50,000 in mid-August.
As the demand rises, there is a spurt in crypto miners’ prices as devices are also seeing price increments. Some devices cost 5 million Vietnamese dongs ($220) higher than it was in mid-August, notes crypto mining enthusiast Ngoc Van. He added that the best-selling mining equipment based on graphics produced by Nvidia or AMD currently cost between $3,500 and $4,400.
The administrator of one of Vietnam’s local crypto mining community of 80,000 members, Le Hung, also recorded a sudden beefing up of the Vietnamese mining market owing to both the crypto rally and COVID-19 pandemic. Hung explained that it was first seen that Ether, Bitcoin and other cryptocurrencies were seeing price hikes as miners started making good profits and then there was the prolonged pandemic reducing investment options for the general public leading more people to get involved in coin mining.
Speaking of legal regulations, the Ministry of Finance in Vietnam has remained sceptical, often warning Vietnamese citizens that crypto is unregulated. Back in 2018, the government had banned cryptocurrency as a means of payment, and since then, the authorities have been urging citizens to avoid crypto.
Although the government has expressed anti-crypto concerns, Vietnam’s cryptocurrency adoption rate has been the highest among the other 26 countries in the month of August.
Despite being only the 53rd largest economy, Vietnam had also ranked 13th in realized Bitcoin gains for 2020.