Chinese miners turn to alternative currencies to keep operating – Bitcoin News

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China’s mining crackdown has forced many miners to shut down and relocate. But another group of miners are considering turning to new, more efficient mining programs to continue operating in the country. Lesser-known tokens and systems based on proof of stake are now in the crosshairs of these miners as a means of continuing their work away from government oversight.

Chinese miners turn to other crypto business

The recent mining and trade crackdown in China has affected the lives of thousands of miners who have had to shut down their operations due to new policies established by the government. While many of them are looking to relocate to other countries, there is also a group that is looking to look to new alternatives to continue operating in the country.

One of the main goals of this group is the new wave of storage-based tokens. Bloomberg confirmed this, attending the Web 3.0 Blockchain Application Cum Computing Power Overseas and Distributed Storage conference in Chengdu – one of the first crypto-related events to occur after the crackdown. Some of the miners in attendance were interested in Filecoin, mentioning that it might be a safer bet due to its less energy-intensive mining process. Another miner said Filecoin was a “gray area company that has yet to gain the attention of regulators,” explaining the interest it has generated.

Another storage-based token that catches the interest of these miners is Swarm, a currency that shares the same proposition as Filecoin and Chia.

Miners are still reluctant to act

However, these miners are the bravest of the bunch, as these new cryptocurrencies could also be targeted by the Chinese government in the near future. According to experts, some minors are still in a wait-and-see phase, awaiting new measures from the government. But the signs are not favorable. Last week, Anhui, another Chinese province, announced that it would crack down on bitcoin mining operators in the region over power shortages.

According to Tan Weizhe, managing partner of Zhizhen Capital, a large number of miners are still waiting to move to other countries and most of them will move next October. Weizhe manages mining energy migration services and is responsible for the operation of several crypto complexes in the United States, Australia and Canada.

As the crackdown on mining and trade operations intensifies, the Chinese government is expanding the scope of the testing phase of its central bank digital currency, the digital yuan.

What do you think of this new pivot from Chinese miners to more obscure cryptocurrencies? Tell us in the comment section below.

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