Major Bitcoin Mining ASICS Manufacturer Bitmain Expanding to the US Market amidst Unfavorable Conditions at home in China
Mar 19, 2018 Posted / 1582 Views
Chinese government conducted a crackdown on every aspect of bitcoin activities in China first starting with bitcoin and cryptocurrency trading houses. The government literally shut down the trading houses and made it illegal to trade bitcoin in mainland China.
Bitcoin miners have been anticipating they would soon be targeted by the authority in the following crackdown to shut down bitcoin in china in it’s entirety. Unfortunately, this speculation became a reality when the government announced a crackdown on bitcoin mining facilities in the country.
China produces most of the Bitcoin the world uses today, with the highest concentration of mega bitcoin mining farms. Bitcoin mining involves an energy-intensive process of solving complex math problems to add bitcoin transactions to the blockchain public ledger. Citing many concerns including the high energy demand of bitcoin mining farms which is estimated at 4 gigawatts the production capacity of a whole nuclear power plant. However, the government is shutting bitcoin mining not because of the energy depletion risk but its attempting to wiped out cryptocurrency from the Chinese economy.
Just like it happened during the Gold rush period when sellers of gold mining equipment made more money than the gold mining companies themselves. Manufacturers of bitcoin and cryptocurrency mining equipments have become the most profitable companies in the last few years.
Its reported that bitcoin made between $3 Billion to $4 billion in profits in a period of one year alone. This is more then what computer graphics card manufacturers Intel and Nvidia makes per year. A multitude of orders from around the world is queuing to purchase bitcoin mining equipment at bitcoin with most ant miners selling out before their official release.
Currently the most efficient Bitmain mining ASICS on the market is the Antminer S9 with an estimated mining hashing power of about 13 TH/s. The antminer S9 currently sells for $2000 without the power supply. Other version including the Antminer X3 with a mining hashing power of 220KH/s. The miner is capable of mining other cryptocurrencies like monero, Bytecoin, DinastyCoin and others. The funny part is bitcoin was limiting the sale of this $3,000 piece of equipment to just one per person before it sold out. The antminer X3 could make up $200 a day in lab conditions though real-life conditions is expected to vary much.
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the Chinese government crackdown on cryptocurrency is driving out bitcoin companies out of China. For a long time, China has been leading in terms of the number of bitcoin mining and exchange firms. With the government crackdown many of these companies are looking for heritage elsewhere.
Japan and south Korea is among the countries which has become the favorite destination for Chinese bitcoin companies. This is largely due to the favorable cryptocurrency regulation that are in both these two companies. In Japan the government is encouraging bitcoin usage which will soon be added among the options for paying for government services and utilities.
It is certain China knows the benefit of cryptocurrency but only needs more control over it. This deduction came after Chinese government officials proposed to develop their own cryptocurrency which could be the digital version of the Chinese Yuan. With full government Control China believes that could be the best version of cryptocurrency that can operate in the country
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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