China has played sean walsh bitcoin charts dominant role in Bitcoin for much of the crypto-asset’s short life. But the hold of the world’s No.
2 economy over the fast-growing industry faces a major challenge this year. As millions of Chinese are set to begin their own winter holiday season to celebrate the New Year, 2018 could mark the shift of Bitcoin mining power to North America. China’s outsized influence over Bitcoin is one of the many ways the digital currency defies conventional wisdom. Massively popular platforms have dominated worldwide only to stumble in China, often outflanked by local rivals and even imitators. First, each year, the Lunar New Year is considered something of a cooling period on BItcoin mining expansion across China because so many people are on holiday. But the worst month for the new financing phenomenon came after China banned its citizens from participating in these digital token sales. The main area where Chinese companies clearly out-rank their global Bitcoin competitors is mining.
It is estimated that nearly two-thirds of all the world’s mining is in China. Not only do miners produce new Bitcoins for the market, the mining process essentially dictates the governance model for software operation and security for the Bitcoin network. But the miners’ dominance from China is now eroding. The Chinese government has begun eliminating electricity subsidies. These had underpinned mining profitability by containing one of the biggest costs in the massive operations.