The fever of importing 'buffaloes' to mine virtual currency

Although Bitcoin is not yet considered a legal currency or asset in Vietnam, the craze for importing "huge" computers to mine virtual currency is still booming.

Currently in Vietnam, investors are seeking profits with Bitcoin in two forms, one is surfing, buying and selling (through exchanges) or investing in buying "mining machines" - powerful computer systems to mine Bitcoin. In fact, Bitcoin is not considered legal, but computers are not prohibited or conditionally imported items. Therefore, the General Department of Customs is also confused about whether it is right or wrong to allow businesses to import large batches of computers to Vietnam to "mine" Bitcoin.

A source from the State Bank confirmed that it still maintains its stance of not recognizing virtual currencies, including Bitcoin, as legal currency and means of payment in Vietnam.

"Plowing machines" are sold online.

However, the trend of "mining" and investing in virtual currencies such as Bitcoin, Linecoin, Ethereum... has increased recently, especially after the Government approved the Project to complete the legal framework for managing and handling virtual assets, virtual currencies, and cryptocurrencies. A representative participating in the drafting of this document said: "The issuance of the Project does not mean that Bitcoin will definitely be recognized, but only shows that the Government is assigning the task to ministries and branches to review the legal framework to study how to deal with virtual assets, virtual currencies, and cryptocurrencies, including currencies like Bitcoin."

Bitcoin has now risen to a record high of over $4,700. Not only Bitcoin, many investors are also whispering to each other to switch to Ethereum - a virtual currency that analysts believe is likely to become the second Bitcoin. In the past year, Ethereum has increased in price more than 300 times, up to about $370 per unit.

Currently, each "mining machine" (Bitcoin mining machine) is often sold on websites with an average price of 30 to 60 million. Each of these machines is usually equipped with 6 graphics cards, some new models have 8. About two months ago, many computer component suppliers in Vietnam were "out of stock" of graphics cards because of the high demand for "Bitcoin mining machines".

Mr. Hai - the owner of a computer components store in Hai Ba Trung district, Hanoi, admitted that although demand has "cooled down" at present, there was a peak period when the store's revenue was over two hundred million VND per day thanks to customers ordering dozens of computer sets.

In fact, owning Bitcoin by "mining" or "self-mining" in Vietnam is very rare, but mainly purchased through some exchanges.

The State Bank maintains its stance that Bitcoin is not considered legal currency.

In addition, Bitcoin mining is now more difficult than before because there are too many people participating. In addition to the initial investment fee, a common "buffalo" consumes about more than 2 million VND in electricity per month. In addition, Bitcoin miners also have to bear many risks. The machine operates almost 24/7, so components such as mainboard, video card, power source... get hot, easily causing short circuits and fires. "Because Bitcoin prices continuously hit record highs, many customers who buy buffaloes without fully understanding Bitcoin and the complicated mining process often resell them after a few months of use. Some people also regret the investment money so they rent them out because they lose a lot of value when they sell them," Mr. Hai added.

Bitcoin was secretly created on the Internet in 2009, in the context of the global economic crisis. This currency can only be created through complex algorithms. Currently, the world has about 15 million Bitcoins.

However, many financial experts around the world are concerned about the bubble in the value of this virtual currency.At the end of May, the total value of Bitcoin globally evaporated 4 billion USD in just 4 days.

Sharing with the press, financial expert Nguyen Tri Hieu also said that at this time, investors participating in Bitcoin are quite adventurous. According to him, if you invest in Bitcoin from the beginning or "mine" it yourself with the current high price, you will have a chance to make a big profit. On the contrary, if you just participate now, you may face legal and price risks when this currency is being likened to a "bubble".

The State Bank has also recommended that organizations and individuals should not invest, hold, or trade in Bitcoin or other similar virtual currencies. "Bitcoin is not governed or controlled by any state management agency, so Bitcoin owners will bear all the risks because there is no mechanism to protect their interests," the State Bank said.

According to VNE