BTC China, world #1

Kapronasia itself has separate entities registered in mainland China and Hong Kong, but even moving funds between the two is problematic. To do so in the fiat economy, one actually has to invoice the other and perform a currency conversion. Despite the increased trading activity and media hype, the story ‘on the ground’ in China is smaller-scale. The only physical stores accepting bitcoin are a couple of enthusiast cafes in Beijing and, while about individual sellers on Taobao China’s answer to eBay accept bitcoin, it is far from a popular payment option.

When I speak to other people they’re very interested and want to get involved, but they know nothing about it yet. Quite a way down, as it happens. Government regulators stepped in, stamped down and severely limited its use, fearing it was being used for ‘black market transactions’ and money laundering. Bitcoin may be bringing back memories of Q coin’s glory days: Publicity stunts Kapron recently covered a story about local company Shanda, whose real estate arm promoted a recent upmarket condo development by announcing it would accept bitcoin as payment for property.

Whether the Shanda real estate deal was an authentic financial experiment or just a promotional gimmick is unknown; nor do we know how many people actually paid or part-paid for new apartments in bitcoin. But Shanda is primarily an IT company and its customers mainly young and tech-savvy professionals, so their choice of PR tool was an effective one.

Search giant Baidu’s ‘ announcement ‘ it would start accepting bitcoin was a little underwhelming in reality: Chinese are still really into mining “It’s also hard to tell exactly how much mining activity is coming out of China these days,” Kapron said. TOP has also decided to shift its operations to Canada. The main cost of bitcoin mining is the electricity.

It can constitute up to 70 percent of the overall cost. For this reason, most of these bitcoin mining equipment are installed in rural places close to hydroelectric plants.

Inside a Chinese Bitcoin Mining Operation

Some plant owners have opted to either sell the surplus energy to bitcoin miners or set up their own mines. Since bitcoin mining consumes huge amounts of energy, miners often seek locations with easy access to cheap electricity. Miners set up mines in the area owing to its abundance of hydropower, ideal for the high energy needs of the machines needed for cryptocurrency generation.

And as said before, Bitmain is the biggest bitcoin mining company in China. Bitmain has also cooperated with ViaBTC, which is the third largest mining pool in the world.