Humanity is on the verge of a new era of financial relations: Bitcoin, the cryptocurrency that has become very popular over the past few years, is called to make a revolution. Its history does not even last a decade, but today many financiers and politicians are predicting a glorious future for BTC. In the Internet space, there are about a hundred virtual exchanges on which the virtual money rate is set.
Like other areas of life, the course of bitcoin has become an arena for the confrontation between West and East. The price of bitcoin depends on specific actions in different countries, and many experts are trying to solve a difficult question: who is the most influential in calculating the cost – Yankees or Asians.
From the very beginning of the foundation of this blockchain system, China has taken a confident leadership in the matter of mining (mining) virtual money. If you look closely at the statistics of bitcoin exchanges, the most profitable rate is always set on Asian exchanges.
You can even call an ideal place for this type of earnings. This is a small town of Kongiu, located in the Sichuan province, a kind of paradise for bitcoiners from around the world. The fact is that there are inexpensive electricity, low average wages and a very moderate standard of living of the population as a whole. The totality of these terms is important in determining the exchange rate.
Favorable conditions contributed to the fact that miners from China concentrated in their hands more than two-thirds of all the computing power of the bitcoin system. Chinese users use powerful and at the same time very cheap microprocessors for mining operations, which are produced by local factories.
What can follow Asian leadership?
And indeed: today, the Chinese exchanges that trade digital currencies confidently occupy leadership positions in the world. However, what will happen next? After all, the volume of bitcoin operations in Asia is about $ 9 billion – an impressive amount for such a system.
Despite such optimistic information, some participants in the system are not particularly happy, as Asian governments oppose the active and immediate implementation of digital money in the life of an ordinary person. However, there is an opposite opinion.
Professor Emin Sirer, a specialist in the development of information technologies, is firmly convinced that there will be no bad consequences for the welfare of bitcoiners from the superiority of Asians. In any case, as he claims, in the Celestial Empire there are a lot of people with different opinions, so there will be no definite consensus (to prohibit or completely allow).
Professor Sirer pays attention to other facts, for example, to the huge power accumulated in the hands of the Chinese. If the government of the Celestial Empire wants to cover the cryptocurrency shop to suit its needs, then such an action could negatively affect the entire global BTC market. And such fears are based on a real basis: in China, quite often attempts have been made to completely subordinate the virtual network. At the same time, the bodies that censor China are unprecedentedly strict.
However, in government circles of the Celestial Empire are far from stupid people. They understand the benefits of using blockchain systems, so they forbade only banks to trade bitcoin, but they did not touch private individuals. All mining processes also did not fall under the ban from the state.
But the countries of the Atlantic and, above all, the United States, are not so easy to compete with Asian competitors. It’s all about a high standard of living, large salaries and expensive electricity necessary for the stable operation of the processor that performs mining operations. One-third of the world’s bitcoin capital is under the control of American specialists, which does not allow them to radically influence the situation.
However, as some experts believe, in the future the state of affairs may change in the opposite direction. The fact is that the governments and financial circles of Western countries called for a thorough study of cryptocurrency and the possibilities of its use in real life. The largest banks even created a special R3 consortium whose task is to develop their own blockchain system, which will significantly reduce the cost of servicing banking networks. In general, the Western government is more loyal to Internet currency than in Asia, which gives reason for thoughts about the transfer of capital from China to the United States.
But the reality so far speaks differently: financial gain is not afraid of various threats. Chinese mining BTC today is thriving due to a number of factors: cheap labor, electricity and low living standards. It may sound strange, but it is precisely these negative aspects of society that allow Chinese businessmen to control a significant part of the BTC virtual market. The prospect for the coming years is determined – Chinese miners will prevail over their Western competitors. What will happen in the more distant future, history will show?