Bitcoin: So Long Utopia, Hello China

The Washington Post went to Tibet to sniff out why bitcoin microprocessor “mines” thrive there, near actual mines where the original reserve currency — gold — still is prized.

The short answer as to why the virtual currency thrives? Cheap water for cooling, low-paid workers rewarded with bitcoins to solve mathematical problems, the regional value of bitcoin transaction anonymity and China’s willingness since 2013 to let ordinary people — including venture capitalists — buy and trade bitcoin, even though Chinese banks can’t. According to the Post,

“mines run by Chinese companies account for about 70 percent of the world’s bitcoin processing power, its factories produce the cheapest microprocessors to run these mines, and its exchanges account for about 70 percent of the world’s bitcoin trade.”

A few conclusions from the so-called bitcoin “mining” industry, referring to the technology hubs that facilitate the bitcoin network, from The Post’s article published this week:

“Bitcoin began as a Utopian, libertarian dream, a decentralized currency outside the control of governments, a system that gives its users the anonymity of cash and the instant, global power of email.  … For awhile, bitcoin was effectively kidnapped

Read more ... source: TheBitcoinNews

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