Chinese Rich Kids Still Mine Bitcoin Despite The Government’s Efforts
Despite the Chinese central government’s best efforts to drive bitcoin miners out of the country, miners in the more remote interior regions, including Sichuan and Qinghai Province, have shown a surprising resilience, according to a recent report by Nikkei Asian Review.
The report also mentions that bitcoin mines in western China’s Qinghai Province are often owned and operated by a group of young people referred to as ‘fuerdai,’ a term used to describe the rich children of the new Chinese elite.
With both provinces being considered relatively poor compared to the more developed coastal regions in China, bitcoin mining is seen as viable way to create jobs and generate revenues for the local government, according to the report. Additionally, Sichuan and Qinghai Province both enjoy cheap and often heavily subsidized electricity, making it an ideal location for large-scale bitcoin mining.
Nikkei Asian Review further speculates that the reason why Chinese authorities have condoned the activity is due to a desire to better control the flow of money internationally, in an effort to counter the global influence the US exercises through the US dollar.
It is estimated that China still controls more than 50% of global bitcoin mining capacity, a fact that just this last week prompted Ripple’s CEO Brad Garlinghouse to accuse the digital currency of being “controlled by China.”