Bitcoin mining, the computing process that makes transactions with the cryptocurrency possible, is about to become more expensive for some after China ordered mining facilities to close, reports Bloomberg.
ViaBTC Technology Ltd., which runs the fourth-biggest bitcoin mining collective, is raising maintenance fees for some of its clients Friday to 50 percent from 6 percent, according to a statement posted on its website today. An increase of 733%,
"Some of our long-term hosting partners are facing a crisis of farm closure as mining resources in mainland China become more scarce, leading to rocketing costs of our cloud mining operation," the statement said. "To guarantee the long run of cloud mining, ViaBTC has no choice but have to readjust our maintenance fees."
According to Bloomberg, Chinese officials have reportedly asked local governments to guide miners toward an “orderly” exit from the business, and ViaBTC has moved operations to Iceland and America as a result.
But the operations had an edge in China where the cost of electricity is subsidized.
-RW
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