Skip to content

Thailand benefits from China’s crypto ban decision

The move by China to ban cryptocurrency miners appears to have had a positive impact on another Asian country, Thailand

The move by China to ban cryptocurrency miners appears to have had a positive impact on another Asian country, with Thailand seemingly having benefited in a major way, according to a recent report to have been published.

Arabic media outlet Al Jazeera had reported that retail cryptocurrency mining within Thailand has received a boost following China’s decision to enforce a mega crypto ban in September, with more and more Thai businesses and entrepreneurs capitalizing on the situation and scenario to have presented itself.

One anonymous Bitcoin enthusiast who has since become a miner recently revealed to the media outlet that those within the country were “ecstatic” about the decision and were incredibly quick to acquire the crypto mining machines that were made available due to Chinese sellers. In fact, the anonymous individual also revealed that they managed to get the money outlayed on the expensive technology back within three months after setting up a small solar-powered crypto mining unit for around $30,000.

“The moment China banned crypto, we were ecstatic,” they said before adding: “I made it all back in three months.”

No surprise Thailand is benefitting

Some would argue that it is not a surprise that Thailand has managed to benefit greatly by the decision taken by China in September, as the nation has experienced a boom in regard to the adoption levels of local cryptocurrency adoption, as well.

There are a number of different factors that can help to highlight and outline why this has happened, including the country’s economy, with the Asian nation known to be rather poor, thus helping to attract more people to be interested in crypto, especially as gambling activities have continued to grow in popularity, as well. Bettors are able to access a bitcoin casino now and use the cryptocurrency that they hold to enjoy their favorite games without restriction, whilst also being able to enjoy a number of benefits including increased security.

Entrepreneurs able to take advantage

Pongsakorn Tongtaveenan is another industry entrepreneur that has managed to capitalize on the boom that has been experienced, as he started a reseller business in which he sells crypto mining devices in Thailand. It has been reported that he has been able to sell hundreds of Chinese application-specific integrated circuit (ASIC) miners to a number of small local investors after he noticed that the price of them had collapsed when China decided to introduce its ban.

He noted that the price of ASICs such as the Bitmain Antminer SJ19 Pro had fallen by 30% as Chinese miners exited the nation, but they had eventually returned to their normal price due to the growing trend amongst local miners.

As highlighted before, many Thai people are looking for a stable source of income and Pongsakorn believes the increase in popularity of retail cryptocurrency mining has been a result of the desire they have, especially as optimism amongst investors continues to increase in regard to the overall industry.

“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,” he said.

Not only individuals to benefit

It is not just individuals and Thai residents that have helped demand for crypto within the country to increase, though, with institutional demand having also experienced a notable level of growth in recent years, as well. Early November had seen Siam Commercial Bank – which is Thailand’s oldest bank – make a payment of $537 million to purchase a 51% stake in BitKub, which is the country’s biggest crypto exchange.

It would be wrong to state that Thailand is the only country to have benefited from China’s decision to ban crypto mining and the exit of its miners, though. Nations such as the United States, Kazakhstan and Russia have all seen a huge growth in terms of the number of miners to enter and set up new operations within their borders.