Print Edition - 2017-09-14 | MONEY
In China’s hinterlands, workers mine bitcoin for a digital fortune
Sep 14, 2017-They worked as factory hands, in the coal business and as farmers. Their spirits rose when a coal boom promised to bring factories and jobs to this land of grassy plains in Inner Mongolia. When the boom ebbed, they looked for work wherever they could.
Based on today’s prices, it issues $318,000 in digital currency a day.
From the outside, the factory—owned by a company called Bitmain China—does not look much different from the other buildings in the industrial park.
Its neighbors include chemical plants and aluminum smelters. Some of the buildings in the zone were never finished. Except for the occasional coal-carrying truck, the roads are largely silent.
Inside, instead of heavy industrial machinery, workers tend rows and rows of computers—nearly 25,000 computers in all—crunching the mathematical problems that create Bitcoin.
Workers carry laptop computers as they walk the aisles looking for breakdowns and checking cable connections. They fill water tanks that keep the computers from melting down or bursting into flame. Around them, hundreds of thousands of cooling fans fill the building with whooshing white noise.
Bitcoin’s believers say it will be the currency of the future. Purely electronic, it can be sent across borders anonymously without oversight by a central authority. That makes it appealing to a diverse and sometimes mismatched group that includes tech enthusiasts, civil libertarians, hackers and criminals.
Bitcoin is also, by and large, made in China. The country makes more than two-thirds of all Bitcoin issued daily.
China has mixed feelings about Bitcoin.
On one hand, the government worries that Bitcoin will allow Chinese people to bypass its strict limits on how much money they can send abroad, and could also be used to commit crimes. Chinese officials are moving to close Bitcoin exchanges, where the currency is bought and sold, though they have not set a time frame. While that would not affect Bitcoin manufacturing directly, it would make buying and selling Bitcoin more expensive in one of its major markets, potentially hurting prices.
On the other hand, the digital currency may represent an opportunity for China to push into new technologies, a motivation behind its extensive push into other cutting-edge areas, like driverless cars and artificial intelligence. China continues to offer Bitcoin makers like Bitmain cheap electricity—making Bitcoin requires immense amounts of power—and other inducements.
Dalad Banner may be far away from Beijing’s internet start-up scene and southern China’s gadget hub. Still, many of the workers and surrounding residents see a digital opportunity for Dalad Banner and the rest of their part of Inner Mongolia, an area famous in China for half-finished factories and towns so empty that they are sometimes called ghost cities.
“Now the mine has about 50 employees,” said Wang Wei, the manager of Bitmain China’s Dalad Banner facility, using one of several metaphors for the work being done there. “I feel in the future it might bring hundreds or even thousands of jobs, like the big factories.”
Dalad Banner is not the sort of place that at first glance looks like a home for high-tech work. Indeed, the idea took some getting used to, even among the workers.
“I didn’t know anything about Bitcoin then,” said Li Shuangsheng, a 28-year-old resident who maintains the operations of one of the eight factories.
He bounced from job to job before he landed about one month ago at Bitmain China’s Dalad Banner factory, one of the few lucrative job opportunities in the sparsely populated region.
Li does not yet own any Bitcoin, but he is happy with
the work and studying up on the subject online when family time permits.
“Now,” he said, “I’m starting to have some idea.”
—©2017 THE NEW YORK TIMES
Published: 14-09-2017 07:08