Bitcoin

China Dominates the Bitcoin Mining Industry

Bitcoin is a cryptocurrency project made for the liberation of the general public so that it can be used by anyone but controlled by none. The revolutionary step was taken by Satoshi Nakamoto to develop a currency free from any government control over spending and taxes. Therefore, bitcoin is a platform made to ensure the validation of each and every transaction and an apparent solution to the current banking system. Somehow, this cryptocurrency was able to make its way into China who despite imposing strict central ownership and restrictions accounts for more than 50% of bitcoin mining.

Provided that the authority of the government is widespread, it’s an ironic fact that a company of Beijing named Bitmain is the world’s biggest Bitcoin miner. They operate 2 pools of mining and actually own 30% of the processing ability needed to mine the Bitcoin. It may seem that the Chinese are on a rebellious movement against their government and are seeking a way out towards a decentralized currency but the reality is a  bit shocking.

READ ALSO: Belonging to No One, Bitcoin is the Currency for Everyone

China can’t be challenged when it comes to bitcoin mining. Mining pools in China now own more than 60 percent of the combined hashrate of the bitcoin network. Not only have they made relevant equipment but they have altogether dedicated areas for mining while keeping cheap electricity rates into the equation.

Training is as high on the charts in China as mining, it tops the list of bitcoin transfers considering the entire volume of transactions. One of the reasons for Chinese rule over BTC mining is the cheap electric power which is remarkably less when compared to other nations. The power provided by the state or the hydro-electric stations has enabled them to be way ahead of their competitors.

Another factor of Chinese dominance in the domain is the extensive availability of coal which is abundant in the naturally enriched China. People have invested coals on a huge scale to setup bitcoin mining areas which have turned out to be profitable keeping the difference between hefty BTC value and a cheap investment into account.

China leads the mining pools where individuals combine to share the hashpower and mine bitcoin on a large scale. The pools are so dominant that the individuals are compelled to join them and make a reasonable amount of personal share. The mining network in China has developed so strong that no other nation can think of competing China in the near future.

READ ALSO: Bitcoin Creator was the 44th Richest Person in the World

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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