Crypto mining explodes in Vietnam

Vietnam has the biggest percentage of cryptocurrency holders in the world, so it is hardly surprising that there has been a large resurgence in crypto mining rig purchases of late. 

No doubt due to the changed fortunes of the crypto sector, the mining of cryptocurrency rigs has increased dramatically. The shutting off of mining rigs across China will also have had a profound effect on the industry in Vietnam. 

In a Business Insider India article published earlier today, a local crypto mining rig store owner pronounced that the Vietnamese mining hub had seen cryptocurrency mining “return with a vengeance”.  

He said that mining rig sales had tripled in his store compared to last month. This had happened alongside the rise of Bitcoin and the rest of the cryptocurrency market. 

Given Vietnam’s status as being the country with the largest percentage of cryptocurrency holders, it is perhaps surprising that the Vietnamese government is not more accepting of the sector. Currently “grey areas” exist on cryptocurrency, and it is illegal to use private digital assets as payment. 

Vietnam has a history of cryptocurrency mining, and is the only one in the top 5 crypto ranked counties for mining that has one. The other four countries in the top 5 are relatively new to the game, and these are: Indonesia, India, Malaysia and Philippines. 

The Vietnamese central bank is pretty much in line with central banks around the world, who see cryptocurrencies as a threat. The bank is repeatedly issuing warnings to citizens not to invest in cryptocurrencies because they could fall prey to pyramid schemes and other dangers. 

However, the Vietnamese are buying all sorts of cryptocurrencies, perhaps in a bid to make profits which really aren’t available in the traditional financial system.  

It appears that the slack, from the disappearance of Chinese bitcoin miners from the network, has now mostly been taken up by various countries around the globe, and in August the mining difficulty had increased by 7.3%.  

Canada has been another country to gain from the Chinese exodus. According to the Business Insider India article, certain companies recorded a revenue of almost 30% between the months of April and June this year. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.