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- According to the CEO of Phoenix Store, half of what was lost due to China’s crackdown on Bitcoin mining will never be recovered
- It may seem paradoxical to open a mining equipment store in a country where electricity is expensive
- With new machines added to the network, Harvey anticipates regions like Russia and Kazakhstan to increase their part of the mining scene
According to Phoenix Store’s CEO, half of what was lost due to China’s prohibition on Bitcoin mining will never be recovered. On July 13, two weeks after Turkey’s electrical energy bills increased by 15%, a new store selling professional mining tools opened its doors in Istanbul, the country’s business capital.
Phil Harvey’s thoughts on building a crypto mining store
It may seem paradoxical to open a mining equipment store in a country where electricity is expensive. Phoenix Store, Bitmain’s Middle East business partner, performed the math before launching its second location in the region. The major purpose of the Istanbul store, according to Phoenix CEO Phil Harvey, is to educate the crypto-friendly Turkish public about crypto mining. Customers can then purchase mining equipment and hosting services that are compatible with Canada, the United States, and Russia. It is just not possible to mine in Turkey. It’s as if you want to go gold mining, he explained. You may come here and buy a gold mine, he explained, but it won’t be in the back backyard. It will be held outside.
Harvey began by describing the crackdown, saying that China needs to sustain its current growth in order to complete the projects in the country. To acquire support from the International Monetary Fund or the World Bank, the country must improve in numerous categories, including lowering its carbon footprint: The easiest industry to shrink overnight was a grey area industry. Simply by refusing to mine Bitcoin, China lost 68,000 gigawatts of power in an instant.
Miners are being transferred to other countries because of the crackdown
It’s a sizable cash source, but it pales in contrast to the IMF or World Bank’s investments in China for projects like road construction. As a result, it was a simple decision for China to remove these miners and lower their carbon impact, according to Harvey.
While some miners have stated that they will transfer to cold-climate countries like Canada, Harvey estimates that half of what has been lost as a result of China’s crackdown will never be recovered: As a result, these are older machines that had been sitting in a warehouse for a few years and were only making five to ten percent, so they were turned on. However, taking these off and transferring them immediately makes little sense from an industrial standpoint.
That equipment is only worth approximately $150-$200 at best, and relocating it could cost about the same amount of money. It doesn’t make sense to try this, he explained, which is why he claims we misplaced half of what was in the community. With new machines brought to the community, Harvey anticipates locations like Russia and Kazakhstan to expand their part of the mining landscape, but he has no plans to create new businesses in these countries for the time being. Phoenix only intends to open a store in London after Dubai and Istanbul. He stated that the shops outside of these three locations would not be expanded anymore.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
