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Tuesday, October 17, 2017

Dismantle the Secrets of Bitcoin Mine in China, How Much Are Their Income?

How Much Are Their Income?

Thousands of cooling fans seemed to be whirling around when the room opened. The computer's chips worked so hard that they sounded as high as 95 decibels, or the equivalent of a drill sound, or like the sound of a lawn mower. If not familiar with this kind of sound, the ears bsia buzzing like hearing the sounds of thousands of wasps that lost the nest.

Yes, that's where the miner Bitcoin alias miner save the machine. "This room has 1,500 Bitcoin mining machines, the largest in this location," said a manager at Mabian Tianjia Netwrok Technology Co. Ltd., a Bitcoin mining company located in the Mabian Yi autonomous region of Sichuan, a province in southwest China, told China Money Network on Thursday.

World Bitcoin Mining Center

Mabian Yi is a small town with only 215,000 inhabitants. However, the area is home to nearly 10,000 Bitcoin mining machines that work day and night nonstop to "dig" the virtual currency. Another area in Sichuan which is also a mining site is Kangding (or Dardo in Tibet), which is known for its natural beauty.

Both areas are located in the mountains is now a hub or a major Bitcoin mining center throughout the universe. More than 20 Bitcoin mining companies have put 100 thousand employees there. To meet demand, large retailers of Bitcoin have even opened one of its two global branches in this area.

This Bitcoin mining runs the computational process for obtaining Bitcoin. They moved to mountain areas such as Sichuan to take advantage of cheap electricity costs, low population density, moderate climate, and away from noise. As a result, besides spicy food, Sichuan is now also known as the global capital of Bitcoin.

Since 2015, more than 30 percent of Bitcoin mining machines in China have come from Sichuan, the highest number among all places in China, according to an article published by the National Business Daily. Given 70 percent of Bitcoin's global computing power is concentrated in China, it is natural that Sichuan emerges as a global Bitcoin production center.

Bitcoin mining process is done by running hardware SHA256 type that serves to validate Bitcoin transactions and provide security for transaction records in a large network of Bitcoin. The network then rewards Bitcoin miners by releasing Bitcoin according to the computing power contribution required.

Most of the Bitcoin mining companies are in power plants to save costs, such as electricity costs that suck 60-70 percent of the cost of mining operations. Sichuan is the site for hydroelectric power plants, some of which have electricity surpluses during the summer. As a result, the price of electricity in the province inhabited by the majority of Yi ethnics is sometimes the lowest in China.

Hunting for Free Electricity

Tianjia, for example, is right next to the Bajiaoxia hydroelectric power station. Tianjia operates 5,800 miners in four spaces in Mabian with computing power of 40 PetaHash, a unit of Bitcoin mine speed measuring machine. "The greatest location I can keep is to generate nearly 10 Bitcoins daily," the manager said.

According to him, his company can produce 27 Bitcoin every day, or a total of US $ 31,590 or about Rp 442 million based on the current average price at the level of US $ 1,170 per Bitcoin. The cost to operate the Bitcoin mine is high. Tianjia's largest mining space could swallow nearly 7,000 yuan or US $ 1,017 from the cost of electricity bills per day.

The operational cost does not include machine purchases, which could reach nearly 10,000 yuan (US $ 1,450) per unit, set up server space, install ventilation systems and labor costs. High speed Internet connection is a must, but relatively cheap. Rough counts, citing a mine manager's report, a mine in Tianjia could generate a net profit of 1.84 million yuan ($ 267,414) a year.

However, the likelihood of Bitcoin's mining profit rate is highly uncertain as it depends on the price of Bitcoin. Given the rapidly rising and unpredictable price of Bitcoin, many miners in China choose to save their Bitcoin for long-term investments and only sell at a profit-maximizing price.

Bitcoin Mining also provides outsourcing services to companies and individuals who want to be involved in mining. Mining will usually be difficult to print money with small scale capital operations. Many Bitcoin mining machines in Tianjia are operated by companies that take investors as another way of lowering costs.

In addition to Sichuan, Bitcoin miners are now even searching for remote locations with cheaper cost or free electricity to operate, such as Xinjiang, Ningxia, Mongolia and many western provinces in China. Perhaps in this strange way, thousands of modern digital currency miners are returning to their hometowns.

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