There is a “civil war” going on between Bitcoin miners in China and in the west

Did a post yesterday looking for reasons why bitcoin plummeted from around $1,100 last week to $780 yesterday (back up to $840 this morning Tokyo time) after having a news article sent to me on China’s involvement. Chinese authorities stepped in the other day announcing an investigation into bitcoin exchanges in Beijing and in Shanghai. Exchanges act as a medium for traders of bitcoin to set limits on orders to buy/sell bitcoins for a determined price. Exchange will match buyers and sellers when conditions of both the buyer and the seller are met. Chinese authorities announced the investigation because the exchanges in China were manipulating bitcoin prices, were involved in money laundering, and the exchanges were being used to send money out of China. What we’re seeing here is the Chinese attempting to monopolize the bitcoin industry. Probably as far as I can tell, one reason why China is looking to monopolize the bitcoin industry, the Postal Savings Bank of China (PSBC) just announced this past Tuesday that it has “become the first Chinese bank to use blockchain“. Eventually, banks will begin to develop their own forms of crytpocurrencies with several already being announced including a bank connected to Rothschild banking interests.

What was also discovered after doing some looking around, is what is referred to as a “civil war” going on between cryptocurrency mining in China and the west, especially in the U.S. over software platforms that control the speed and security of bitcoins on the blockchain. The best way to understand this intense competition is to look at a video I dug out which summarizes this “civil war” between China and the U.S. What isn’t mentioned in the hyper linked video, is that in China, the Chinese government subsidizes electrical costs for mining operations, unlike in the U.S. and Europe where private companies pay electrical costs on mining which is transferred to miners and investors. The only way to significantly reduce costs on electrical consumption is to base cryptocurrency mining equipment solely on solar power. There is one company operating in Costa Rica run by Germans called “Avalon Life” that returns the highest return on investment in bitcoin mining. Their mining equipment generates all of its electrical needs from solar power. The downside is Avalon Life requires a minimum upfront “license fee” of $900 to begin mining with them.

Here is a video of a cryptocurrency mining operation set up in China if anyone has not seen what the inside of a mining operation looks like. The biggest expense in these types of mining operations are electrical costs generated from keeping the equipment cool 24 hours a day. There are several really good companies mining cryptocurrencies including bitcoin in China that I have been able to find. It is a good idea to invest in both Chinese-based and US-UK- based mining operations.