Cheap Chinese Electricity – A Reason For Bitcoin Boom

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China is one country in the world that is overloaded with electricity. With plenty of electricity available, China can easily produce steel and aluminum. This is one of the reasons why the U.S. President who has been campaigning for the America first approach has announced 25% tariff on imported steel and 10% tariff on imported aluminum. This rule comes into effect from March 1. This has made the U.S. manufacturers think twice before importing steel and aluminum from China.

There is also a very good relationship that the Bitcoin industry has with China. As the Chinese government announced a crackdown on the production of Bitcoin on its soil, the prices of the Bitcoin and other digital currencies took a big hit. It traded very low in the market.

There is something common between the Bitcoin and aluminum and that is they can convert the excess electricity into a useful thing that can be exported or saved.

The Chinese entrepreneurs and enterprises have decided to make hay while the sun shines. They have started to turn the excess electricity into Yuan or Dollars or even convert it into aluminum or Bitcoin.

Three-quarter of the global Bitcoin production was from China. The hammer that the government brought to the Bitcoin production in January resulted in the Bitcoin deflation in the market. It has not been able to attain its previous highs since then.

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