Crypto mining demand soars in Vietnam amid Bitcoin rally

Published at: Sept. 6, 2021

The cryptocurrency mining market in Vietnam is reportedly reviving amid the renewed crypto rally, where Bitcoin (BTC) has surged above $51,000 for the first time since May.

Crypto-related entrepreneurs and enthusiasts in Vietnam have witnessed a significant uptick in demand for crypto mining rigs in the country, local news agency VnExpress reported on Monday.

Quang Thuan, owner of a chain store selling cryptocurrency miners across Ho Chi Minh City, said that the company’s sales have tripled in early September over the previous month. He noted that the mining rig market in Vietnam was down before Bitcoin surged back above $50,000 in mid-August.

The rising demand has triggered notable growth in crypto miners’ prices as some devices are now priced at 5 million Vietnamese dongs ($220) higher than in mid-August, according to local crypto mining enthusiast Ngoc Van. The best-selling miners based on graphics processing units produced by AMD or Nvidia now reportedly cost between $3,500 and $4,400, he added.

According to Le Hung, the administrator of a local crypto mining community with nearly 80,000 members, the crypto mining market in Vietnam has heated up due to the renewed crypto rally and the ongoing COVID-19 pandemic. “First, Bitcoin, Ether and other cryptocurrencies have simultaneously seen price hikes, and miners have started to make profits. Second, the pandemic has prolonged, reducing investment options, and so more people have opted for coin mining,” he said.

Related: Nvidia fails to sell as many crypto-mining GPUs as expected in Q2

The Vietnamese government has maintained a skeptical stance on the cryptocurrency industry, with the Ministry of Finance warning the public earlier this year that crypto is unregulated in the country. After banning cryptocurrency as a means of payment back in 2018, Vietnamese authorities have been urging the population to avoid crypto.

Despite hesitation from the government, Vietnam had the highest cryptocurrency adoption rate in August among 26 other countries. The country previously ranked 13th in realized Bitcoin gains for 2020 despite having only the 53rd largest economy based on gross domestic product.

Tags
Bitcoin
Regulation
Bitcoin Price
Cryptocurrencies
Government
Mining
Bitcoin Mining
Vietnam
Related Posts
China’s crypto ban: Buy the dip or cause for concern?
Last month China’s central bank, the People’s Bank of China (PBoC), published a memo criminalizing practically all cryptocurrency activity. When the memo started circulating online, Bitcoin’s (BTC) price dropped over 6.5%. Soon after, however, industry experts suggested that the news may have been the ultimate dip-buying opportunity. China’s crackdown on crypto started years ago, to the point that Bitcoin suffered its biggest mining difficulty drop of nearly 28% in July of this year as miners started migrating out of China after the government tightened its grip on bitcoin mining and trading. The crackdown saw the computing power securing the Bitcoin …
Bitcoin / Oct. 12, 2021
How does the infrastructure bill affect the mining industry in the US?
On August 10, the United States Senate voted to pass a $1 trillion bill to revitalize America’s infrastructure. From the standpoint of the crypto community, miners in particular, the Senate’s foray into crypto legislation has been a disaster. Unless the language defining brokers in the bill is clarified, it will singlehandedly thwart the growth of a domestic industry just as it is taking off. As written, the bill allows for multiple interpretations of the term “broker.” In the English language, there is no real controversy — or ambiguity — about what a broker does. According to Merriam-Webster’s online dictionary, a …
Technology / Aug. 29, 2021
Some US lawmakers want Bitcoin miners to be exempted from proposed crypto taxes
Lawmakers in the United States have called for caution regarding implementing a proposed tax policy that could have significant implications for America’s crypto space. As previously reported by Cointelegraph, an expanded crypto taxation regime was a last-minute addition to the $1-trillion infrastructure deal currently being debated in Congress. According to the proposed amendments, tighter rules on crypto reporting requirements could provide $28 billion in additional funding for the government. However, Senator Patrick Toomey is among a group of senators who have warned of the broad language used in the expanded crypto tax policy. According to a Washington Post article, Toomey …
Bitcoin / Aug. 3, 2021
Iranian trade ministry issues 30 crypto mining licenses
Iran’s Ministry of Industries, Mining and Trade issued operating licenses for 30 crypto mining centers in the country, the country's Financial Tribue reported last Wednesday. Citing data from the ministry’s website, the report says that Iran’s Semnan Province received the most licenses, with six crypto mining farms now authorized to operate in the region. Alborz Province secured four such licenses, followed by Mazandaran, East Azarbaijan and Zanjan Provinces. Tehran Province, which houses the country’s capital, reportedly received only one license to operate a crypto mining center. The ministry also issued 2,579 establishment permits for new industrial crypto mining units across …
Bitcoin / June 28, 2021
Bitcoin miners sell their hodlings, and ASIC prices keep dropping — What’s next for the industry?
Crypto companies are going belly up left and right, and Bitcoin mining companies also appear to be taking on water faster than they can bail. In mid-June, Compass Mining CEO Whit Gibbs and chief financial officer Jodie Fisher abruptly resigned after allegations that the Bitcoin mining hardware and hosting company had failed to pay hundreds of thousands of dollars in overdue electricity bills to Dynamics Mining, a facility provider for Compass. Bloomberg recently reported that many industrial-size Bitcoin miners took on a significant amount of debt by leveraging their equipment and BTC as collateral for loans to either acquire additional …
Blockchain / July 7, 2022