Text size Bought any Bitcoin lately? Chances are it was made in China. That could be a problem for the burgeoning digital currency—and an opportunity for ambitious rival “miners” in the U.S. and elsewhere. Bitcoin mining is virtual, but requires expensive real-world inputs. Simply put, miners compete to solve increasingly complex equations generated by the Bitcoin network. The first to solve one wins the right to process and confirm new Bitcoin transactions, and win newly minted coin as recompense. Being first requires massive computing power, which in turn requires huge amounts of electricity. Chinese entrepreneurs jumped on this ecosystem in the early 2010s, while Westerners remained wary. Miners harnessed nearly-free hydropower near dams that the country had built with abandon. Beijing-based Bitmain got a lock on the specialized chips and machinery the miners needed (and is aiming for a blockbuster IPO this year). BTCC and other exchanges mushroomed to trade the products.