Vietnam has recently started recording high demand for crypto mining equipment as more people join the sector to mine cryptocurrencies like bitcoin, ether, and others.
Interestingly, the mining rig market in Vietnam saw a significant decline a few months ago after bitcoin lost more than 50% of its value and traded below $30,000 due to several FUDs from China.
However, with bitcoin now trading above $50,000, more people are looking to engage in mining activities and are increasingly purchasing rigs, VnExpress reported Monday.
Quang Thuan, an entrepreneur who owns a chain of shops that supply mining equipment in Ho Chi Minh City, revealed that sales have tripped in early September compared to the last month.
High Cost of Mining Rigs
The surging demand has made mining equipment more expensive in Vietnam, according to rig suppliers across the country.
A rig currently costs VND 30 million ($1,300) on average while the best-selling miners like those with processing units manufactured by AMD or Nvidia are now priced between $3,500 and $4,400, which is about $220 higher than what they were sold for last month, the report added.
But one local miner said he spent about VND3 billion ($130,400) to set up his Ethereum mining farm with new rigs in the southern province of Dong Nai and hopes he can recoup his investment within the next six months.
Lack of Investment Options
Le Hung, an administrator of a crypto mining group with about 80,000 members, said the mining market in Vietnam is booming mainly because of the spike in crypto prices and the prolonged pandemic.
“First, Bitcoin, Ethereum and other cryptocurrencies have simultaneously seen price hikes, and miners have started to make profits. Second, the pandemic (Covid-19) has prolonged, reducing investment options, and so more people have opted for coin mining,” he said.
Despite the surge in demand for rigs in Vietnam, the country is not fully supportive of crypto and has severally warned its citizens against the asset class. The Vietnamese authorities banned digital currency as a means of payment in 2018, but the country started researching cryptocurrencies in 2020 and partnered with TomoChain to issue all diplomas and qualifications under Vietnam’s Ministry of Education on the blockchain.