Skip to main content

Chinese Investment in Bitcoin Mining is Enormous


In recent weeks, the People's Bank of China and various Chinese Bitcoin exchanges have played a tense game of back and forth negotiations, leading two exchanges to suspend Bitcoin withdrawals and causing the price of Bitcoin to plummet around the world. The Chinese government is interested in regulating the exchanges and keeping tighter control over information about customers and transactions. While this interplay is far from resolved, it is important to note as well that China is a major player in the Bitcoin market, and particularly when it comes to Bitcoin mining. What does this mean for the ongoing negotiations between Chinese exchanges and the Chinese government, as well as for the global Bitcoin market?

Mining Centers Flourish in and Around China

A report in the Washington Post in the fall of 2016 indicated that Chinese Bitcoin mines were popping up in Tibet, a perhaps unlikely destination. Mines require massive computer processing resources which are used to record and document all transactions. The process of mining itself requires that those computer processing plants address complicated mathematical problems in order to earn Bitcoins; the process of "mining" therefore addresses certain mathematical and programming issues while serving to introduce new currency into the global circulation.
So why would Tibet be such a hotbed of new Bitcoin mining activity? On one hand, Tibet is an extremely remote and seemingly unlikely place for such operations. On the other hand, though, China has traditionally set up a vast array of traditional mining operations in and around its western region. When the mining operations turned virtual thanks to cryptocurrencies like Bitcoin, Chinese entrepreneurs recognized that hydropower necessary to keep processing plants in operation was cheap, as was local labor.

Shifting Nature of Bitcoin

The wider world first noticed Bitcoin in connection with illicit markets like Silk Road, but the cryptocurrency has gradually eased into the mainstream. This has given rise to a new group of Bitcoin investors and miners: people with a knack for banking and investment who are treating Bitcoin as a new type of opportunity, rather than as a means of opposing the traditional system. As such, people interested in setting up mining operations are looking to areas that make the most business sense to do so, and China offers many such locations. As of late 2016, Chinese mines accounted for about 70% of all Bitcoin processing power, matching the Chinese share of the global Bitcoin exchange as well. Of course, this could change quickly if the Chinese government cracks down further on Bitcoin mining and exchanges in its country. For the time being, though China seems to be an increasingly important player in the world of Bitcoin mining and trading.


Read more: Chinese Investment in Bitcoin Mining is Enormous |

Comments

Post a Comment

Popular posts from this blog

Duncan Logan just tweeted that he's on board Electroneum

I have been a buyer and holder of bitcoin and Etherreum for a long time but this will be the first ICO I buy into--Duncan Logan.

What is Electroneum?

Electroneum (ETN) is a cryptocurrency that can be mined with a smartphone, requiring almost no technical knowledge or prior experience. This sets it apart from other cryptocurrencies (like Bitcoin) which require expensive hardware and technical know-how to mine.
Electroneum’s unique mobile mining experience allows anyone with a smartphone to earn ETN coins by letting the miner app run in the background.
It was designed specifically with mobile users in mind, thereby appealing to a potential market of 2.2 billion smartphone users around the world. Unlike other cryptocurrencies, Electroneum has a user-friendly, beginner-oriented interface that allows users to seamlessly transfer ETN coins between one another, check their balances, and mine coins.
Being a cryptocurrency, Electroneum is created, held, and spent electronically, and has no phy…
Post a Comment
Read more

Case-By-Case or Cease-and-Desist? In Search Of a New Approach to ICOs

That rumble you hear is the sound of regulators around the world mobilizing resources to tackle the pressing matter of token sales. Yet, in spite of the spectacular growth of blockchain token-based funding, no one seems to have a clear idea of what type of rules to introduce. The resulting uncertainty (not to mention ridicule) is left hindering progress as money flows to unviable projects and investors are left vulnerable to foul play – exactly what regulation is supposed to prevent. Perhaps a new approach is needed. But to see where this could go, it's worth stepping back and asking what we expect the regulation to do. Safety belt First, why do we need regulation, not just of finance, but of anything at all? To protect us. At its roots, that is the main role of government – to protect its citizens from avoidable harm and extreme loss brought about by others or from our own lack of common sense. When it comes to securities, that usually means stopping us from making poor decisions…
Post a Comment
Read more

Suddenly, Bitcoin to Be Officially Legal in India

Leading Bitcoin exchange Zebpay has revealed that the Indian government committee has ruled in favor of regulating Bitcoin. On April 14, Cointelegraph reported that the Inter-Disciplinary Committee within India’s Ministry of Finance was actively investigating the legal status of Bitcoin and considering the possibility of regulating the market. Efforts of Indian Bitcoin exchanges Over the past three years, the big three Indian Bitcoin exchanges including Zebpay, Coinsecureand Unocoin operated with self-regulated trading platforms with strict Know Your Customer (KYC) and anti-money laundering systems in place, despite the lack of regulations in the digital currency industry and market. The efforts of the Bitcoin exchanges in India to self-regulate the market allowed the Indian government to reconsider the Bitcoin and digital currency sectors, regardless of the criticisms by several politicians that significantly lack knowledge in cryptocurrency. On March 24, Cointelegraph reported that…
Post a Comment
Read more