Inside a Chinese bitcoin mine Motherboard, a blog run through Vice Media LLC, was recently given a tour of a bitcoin mining facility in Dalian, a port city in Liaoning Province, northeast China.The mine, located on the second floor of a repurposed factory, generates 4,050 bitcoins a month, the equivalent of around $1.5 million, according to Motherboard: "Despite its dystopian appearance, the group’s six mining farms encompass eight petahashes per second of computing power, whose brute force, as of October, accounted for 3 percent of the entire Bitcoin network."Bitcoins – a digital currency that can be transferred instantly between two people anywhere in the world – are generated by "mining" them with custom-built computers.Wikipedia compares the process to "a continuous raffle draw [where] mining nodes on the network are awarded bitcoins each time they find the solution to a certain mathematical problem (and thereby create a new block).Creating a block is a proof of work with a difficulty that varies with the overall strength of the network."

"To put it simply, we're racing to find an answer on the Internet," said Jin Xin, Bitcoin Mine Manager, in a video shot during a site visit.bitcoin pc configuration"Whoever does the correct calculation will be rewarded.bitcoin hnThe rewards are bitcoins, a virtual currency."litecoin localAt its peak, the Changcheng factory churned out 100 bitcoins a day at each of its six sites, but the group of entrepreneurs is finding that as the level of difficulty and computing power increase, the ratio is gradually changing.bitcoin union squareThe process uses about 1,250 kilowatt-hours of electricity, and the group's monthly electricity bill is about $80,000.ethereum marketplace

They are currently mining from 20 to 25 bitcoins a day.The facility has about 3,000 "miners," which are computers that connect to the Internet and churn out algorithms whose correct queries are then generated an award in the form of a "bitcoin" – which is really just a number associated with a bitcoin address.bitcoin amd minerDue to the pseudonymous nature of bitcoin, it is sometimes difficult to figure out who is using the digital currency and for what reason., Bitbank Group Vice President of International Affairs Virgilio Lizardo Jr.discussed the type of people using bitcoin in China.Bitbank Group is behind some of the most well-known bitcoin companies in China such as cryptocurrency mining company and cryptocurrency exchange .According to Lizardo, the use of bitcoin for price speculation is the main thing that has attracted people to the digital asset in China.“There’s very little users,” Lizardo told DeRose during the recent interview.

“I would say 99 percent are speculators.”In the United States and other parts of the western world, many of the early bitcoin adopters had ideological reasons for getting into this new technology, mostly from a libertarian viewpoint.According to Lizardo, this mindset is not as popular in China.“There’s no ideology,” said Lizardo.“Very few people [in China] get into bitcoin because they believe it’s something that’s better for the world or something like that, so it’s all speculative.”From Lizardo’s view, the prevalence of gambling and financial risk-taking in China is what led a section of the population to bitcoin.“When it comes to investment, they’re very big risk takers,” said Lizardo.“For them, when they learned about bitcoin, it was like the most speculative asset they’ve ever seen in their lives . . . That’s the main reason people got into bitcoin here.”Lizardo added that the first people to get into bitcoin in China were miners, mainly due to the cheap electricity and cheap hardware available in the country.“These guys learned about bitcoin and they were in the hardware industry,” said Lizardo.

“They made some miners and they went to the rural parts of China and they set up their mining facilities.”Lizardo would later add that the restrictive nature of the Chinese stock market is something that has helped interest in bitcoin as a speculative asset grow in China.If speculation is the main driving force behind China’s interest in bitcoin, then it should be no surprise to hear that altcoins and initial coin offerings (ICOs) are also popular in the country.According to Lizardo, speculation on these alternatives to bitcoin has been going on in China for the past two or three years, but the sometimes isolated nature of the Asian nation may have led this trend to go unnoticed in the western world.“Things can be huge in China because it’s such a large market and there’s so many people, and nobody would ever know about it outside of China,” said Lizardo.In terms of specific bitcoin alternatives that have shown up in China, Lizardo pointed to , , and , with Ethereum being the only one where there is a sense there could be some actual long-term promise and not just complete speculation.“Ethereum did a very good job from the beginning in engaging China and establishing communities here,” said Lizardo.

“[Ethereum creator Vitalik Buterin] has been coming here from the beginning.”Although China’s appetite for speculation has led to interest in altcoins, Lizardo claimed bitcoin is still viewed as the reserve currency of the cryptocurrency space across the world.“I don’t think bitcoin is not going to be the reserve currency of [altcoins] and tokens for a long time,” said Lizardo.To this point, Lizardo added that altcoin trading is mostly done through bitcoin pairs rather than directly with Chinese yuan.CFO, Korbit CTO, Ledger Founder, Bitholla and Co-Organizer, Seoul Bitcoin Meetup Co-Founder, Bitholla Team Leader, KB Kookmin Card Convergence Team Vice Minister, Ministry of Science, ICT and Future Planning CEO, King Holdings Co-Founder, KoreanBuddy Entrepreneur in Residence/Venture Associate, Blockchain Capital LLC Editor-in-Chief, CoinSpeaker and Author of Butterflies Co-Founder, Coinplug Professor, Hong-ik University Professor, Sungshin Women’s University Founder, WageCan CEO, HANKOOK NFC Inc.

Professor, Department of Computer Science, College of Informatics, Korea University Managing Director, Kapronasia Partner, Korbit Partner, Baker Marquart LLP Brian Klein is partner at the boutique litigation firm Baker Marquart LLP.There, his practice focuses on high-stakes criminal and regulatory defense and civil litigation matters in state and federal court.He has extensive experience representing clients involved with Bitcoin, including many prominent early adopters and well-known start-ups.He formerly volunteered as the outside general counsel of the Bitcoin Foundation, the industry’s leading trade group.He has spoken about Bitcoin around the world at, among other places, global law firms, major payments and technology companies, and conferences for Bitcoin industry members and legal professionals.He also teaches a federal criminal practice seminar at USC’s law school.Before joining Baker Marquart, Brian was a federal prosecutor at the United States Attorney’s Office in Los Angeles for five years (2007-2012).

As a federal prosecutor, he handled significant white-collar criminal cases, including cases involving money laundering, corporate fraud, and tax violations.President, Industrial Bank of Korea CEO, Purse Hans has 16 years of executive management experience in disruptive technology., a publication providing intelligence on crypto-currencies and other blockchain technology applications.From 2003, Hans developed a boutique research firm focused on new and high tech industries in China and secured its sale in 2013., Internet World and Mecklermedia, interviewing Jack Ma, Jerry Yang, Vint Cerf & various other Internet luminaries.In the year of the 1997 handover, Hans earned a Ph.D.from the University of Hong Kong.Hans is also a partner in Merkletree.io, a provider of information and consultancy services on bitcoin and cryptocurrency regulation around the globe.Developer, SmartLottery and Organizer, Seoul Bitcoin Meetup Founder, BitcoinNYC Founder and CEO, Netki Investment Director, SBI Investment Co.