Bitcoin Miners in China Wary of Government Scrutinyno

Rows of computer cards along with many fans to prevent the cards from overheating are the trademarks of a ‘mining business’. China has emerged the undisputed leader in bitcoin mining, it is home to four of the five largest bitcoin mining operations.

Due to bitcoin’s nature of decentralization and anonymity the Chinese authorities are intensely scrutinizing the business aspects of mining and marketing bitcoin. Chinese authorities have labelled bitcoin a commodity rather than a currency. Thereby, they can exert tighter controls.

Owners of bitcoin businesses are concerned over the increasing governmental overseeing so some are considering moving their businesses out of China. Some likely countries for relocation are Vietnam, Laos, Thailand, Russia and the US. Other factor being considered is the cost of power and the reliability of the power.

Cui is a native of Beijing, he sold a broadband internet company and used some of the money to start up a bitcoin mining company. He currently has 100,000 mining machine and the daily electricity costs run more than 1 million yuan. It is very important that the cost to run the machines doesn’t make the business unprofitable. Also if the power is unreliable, the cost of downtime is expensive.

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