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- 1 Vietnam is among the top nations with context to global crypto adoption.
- 2 Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and more reflect positive gains in the past 24 hours.
Crypto miners appear to be getting active as the market starts to show signs of recovery. According to a Vietnamese newspaper, VnExpress, miners in the country are planning to activate their dormant machines again. The nation stands at number three with reference to global adoption as per blockchain analysis firm Chainalysis.
Crypto is Appealing to Vietnamese
A crypto miner from Dong Nai Province said, “The first reason is that no matter how well you maintain your machines, even if you vacuum-seal them, you cannot keep them [dormant] for too long, or else they’ll be prone to damage. Next, mining cryptocurrency is stable and profitable now.”
Virtual assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and more reflect positive gains in the past 24 hours. However, the weekly timeframe shows several virtual currencies losing over 10 percent of their value. The total market volume is down by 25 percent in a day with $54 Billion, meanwhile, market capitalization has increased by over 2 percent.
Earlier this year, crypto miners in Vietnam showed similar enthusiasm following positive momentum in BTC. It rose to $21,000 from $18,000 on January 14. A miner then told VnExpress, “We are buying more rigs because mining is still easy now. If the Bitcoin price maintains its current level ($21,000), we will eventually make profits.”
Many miners reportedly deposited their mining equipment at solar farms to save energy bills. Crypto mining is a power-intensive process, specifically due to the Proof-of-Work (PoW) algorithm. Bitcoin being the largest asset in the market is responsible for the majority of energy consumption.
According to data collected by British news agency The Guardian, “Bitcoin, the most widely-mined cryptocurrency network, used an estimated 85 Terawatt-hours (TWh) of electricity (0.38% of global electricity use) and about 218 TWh of energy (0.13% of global energy production) at the point of production—more than Belgium and Finland, using the latest country energy estimates from 2019.”
Nearly a billion crypto miners are active across the globe. With BTC halving closing in, several miners are planning to mine the asset more profitably. A Vietnamese crypto rig seller explained to VnExpress that new crypto miners are entering the market.
Data shows that 17 percent of the country’s citizens have used digital currencies. Crypto exchanges operating from the region are expected to generate over $100 Million in revenue this year. Fluctuating fiat currency and inflation are among the reasons to try cryptocurrency there.
The largely unbanked population in the country has given a push to decentralized finance (DeFi) in Vietnam. A large chunk of DeFi activities comes from the region. Remittances play an integral role in pushing crypto transactions in the nation.
According to the international financial institution World Bank, the cost of remittances is comparatively higher using Vietnamese Dong than cryptocurrencies.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
