Cryptocurrency transactions are made possible by a process called mining. And bitcoin mining has just been hit with such high government charges and interfering regulations in China that their mining fees are going haywire.
According to ViaBTC Technology Limited, because of these problems they will be pushing maintenance fees for some clients up to fifty percent from a low six percent starting at the end of the week. VIaBTC is the fourth-largest bitcoin mining operation in the world.
Bet Capital LLC on the other hand, based in Utah, has no intention of increasing or even starting to charge fees for mining. They never have, and never will. This move by China is a great prospect for US based cloud mining companies, like BET Capital.
In a statement posted on their website, the ViaBTC said that farm closures have quadrupled in the last few weeks on mainland China; this unexpected scarcity has led to huge cost overruns in cloud mining operations. To service their customers properly, ViaBTC says they must adjust their maintenance fees accordingly.
The Chinese government is pushing miners out of the country by restricting access to power grids and enforcing obscure zoning codes, with the result that companies like ViaBTC are moving their business to North America and Iceland. The reason for the uptick in service fees, most experts agree, will be because electricity is much more expensive in countries like the United States and Iceland — whereas in China electricity is a subsidized utility.
ViaBTC makes a profit by renting hardware power from their data centers to cryptominers. And, as stated above, these fees are going to go through the roof, especially for those who have an S9 contract with the company, which they call the most power efficient and technologically advanced system available.
Blockchain transactions are recorded, then verified when a computer, in competition with others, solves a complicated algebraic problem and is then awarded a single bitcoin — this, basically, is what bitcoin mining has become today.