Vietnamese crypto miners have begun investing in more rigs after Bitcoin and other cryptocurrencies soared in the past month.
Bitcoin’s price climbed from $18,000 to $21,000 on January 14, stabilizing around the price cap since. Many other cryptocurrencies have followed Bitcoin’s revival, with Aleo, ERG, Kat, and ETC rallying at the start of the new year.
Crypto miners use mining rigs to validate transactions and generate new currency by solving complex equations. Vietnam had the highest number of crypto users in 2021, reportedly owning 41 percent of retail crypto investments out of 27 countries.
However, Vietnam has seen tumultuous demand for cryptocurrency rigs throughout the year, seeing numerous mining facilities closing down following Ethereum’s Merge and the collapse of FTX. Vietnam has also yet to recognize cryptocurrency formally, with banks warning users that trading may come with many risks.
Hope for future returns
Vietnam’s new rigs are used to mine tokens such as Bitcoin and Ethereum. However, miners are also prioritizing older, cheaper rigs to cut costs.
According to cryptocurrency mining rig seller Thien Binh, demand for second-hand machines has risen. Second-hand Asic (ASIC Baikal G28) machines cost a third of the price of a new rig and are used to mine Dogecoin.
With the reduced cost, miners may break even in 10 months if Dogecoin stabilizes around its current price of $0.08. According to rig owner Banh Minh, many miners have also invested in bigger rig networks with lower prices to mine Bitcoin and ETC.
“We are buying more rigs because mining is still easy now,” a veteran miner told Bitcoin Insider. “If the Bitcoin price maintains its current level, we will eventually make profits.”
Though hopes are high, other miners suggested that the market might be unpredictable and that more challenges might come in the next year.