I couldn’t help but notice that the news article on the video suggesting that BITMAIN is supported by the chinese government and because of that they can use low-cost electricity was written on Nov 10, 2016. And also the video suggesting GoC’s interest in Cryptocurrency was posted on Jun 14, 2017.
I’m not going to say that those articles are old and no longer relevant, but I would say that things might have changed since then. Here’s what I found:
Bitmain Is Moving To Europe But MoonLite Got There First - January 12, 2018
Over the last six months, however, regulatory actions from the Chinese government have forced Bitmain to reconsider its operational approach. Sure, Mongolia is autonomous from central China, but this far from insulates Bitmain from the whims of the Chinese government and, as such, there have long existed rumors that Bitmain will diversify its geographical approach and set up shop somewhere that isn’t as susceptible to government action.
And this week, we got confirmation of these rumors.
The company just announced a brand new arm of its mining operations, a subsidiary, called Bitmain Switzerland that, as its name suggests, is located in Switzerland. Europe has proven incredibly accommodative of cryptocurrency companies both from a regulatory and a local talent pool perspective and when these factors are coupled with the geography, climate and tax aspects of a North Central European location, it looks as though Bitmain has made a smart decision.
Bitmain Recorded $2.3 Billion Turnover Following Cryptocurrency Boom in 2017 - February 6, 2018
Mining in China
One challenge that Bitmain has faced since its inception is government regulation. Much of China’s mainland authorities have banned the usage of cryptocurrency and are now looking to close the application of crypto hardware. That could end up hurting sales for Bitmain’s mining chips. However, the pressure of shutdown has led Bitmain to seek more friendly overseas investment opportunities.
Furthermore, the massive consumption of electricity is also proving to be a hurdle for the hardware manufacturer. The energy consumption needed to mine cryptocurrency is skyrocketing, and this is another red flag for authorities. The bitcoin energy consumption index reveals a much similar characteristic.
From what I understand, China used to have an interest in cryptocurrency and mining business, but now they are literally banning cryptocurrency and their companies are moving to other countries due to strict regulations.
Why would they leave the mainland if they were still on the good terms with their gorverment?