But the Chinese government isn't a fan of Bitcoin, for a few reasons, and it appears that a shutdown of mining operations is imminent. In view of the looming state crackdown on their business, some of the largest bitcoin miners have made a decision to shift their operations overseas, Bloomberg reports.
One ideal example moving out of China is Bitmain which has been running the two largest Bitcoin mining centers.
Other Chinese companies moving from china are BTC.Top which is the third biggest mining pool which is already opening a facility in Canada while 4th ranked ViaBTC already has operations in America and Iceland.
As we reported this past weekend, the People's Bank of China (PBOC) is rumored to be discussing a power cut for Bitcoin miners.
The computing process that completes transactions and creates new crypto-tokens requires vast amounts of electricity - between 8.27 terawatt-hours a year and 37.22 TWh a year - almost the amount used in Estonia or Peru, Bloomberg said. Bitcoin miners have taken advantage of cheap power in coal-abundant areas like Xinjiang and Inner Mongolia in recent years to expand their operations.
"We chose Canada because of the relatively cheap cost, and the stability of the country and policies", Jiang Zhuoer, founder of BTC.Top, told Bloomberg, adding that Iran and Russian Federation are two other possible options.
While the complete ramifications of such an action are not totally clear, the pending action is indicative of China's hard line it has chosen when dealing with cryptocurrencies in general and its ban on initial coin offerings that roiled the industry not too long ago. According to a leaked document to the internet-finance regulator, they are requiring local authorities to guide bitcoin miners to exit from the business of mining.