In the fast-moving world of cryptocurrency, few stories capture the highs and risks of Bitcoin mining quite like that of Long Yujiang — once dubbed the “Bitcoin King of Chengdu.” At the peak of the 2013 Bitcoin boom, Long was pulling in 55 Bitcoins a day, worth over $385,000 at then-market prices. Today, due to increased network difficulty and shifting market dynamics, his daily haul has dropped to around 30 Bitcoins — still worth approximately $140,000, but with a staggering $14,000 in electricity costs alone.
This is the reality of modern Bitcoin mining: immense potential rewards shadowed by soaring operational costs and market volatility.
The Rise of a Crypto Pioneer
👉 Discover how early adopters turned computational power into life-changing wealth.
Long Yujiang, now 25, began mining Bitcoin in July 2009 — just months after Satoshi Nakamoto launched the network. As one of China’s earliest miners, he’s witnessed every phase of the digital currency’s evolution: from obscurity to frenzy, regulation to recalibration.
Today, Long operates about 5,000 mining rigs across 60 clusters. His setup allows him to mine between 30 and 50 Bitcoins daily, depending on network conditions. But beyond mining, he's also become a key supplier in the ecosystem — selling high-performance ASIC miners under the "Meilin" series, priced from $24,000 to $70,000 based on hash rate (ranging from 360 GH/s to 1.6 TH/s).
His machines sold out fast — 600 units gone in just three to four days — proving that even during market downturns, demand for mining infrastructure remains strong.
Despite being labeled the “Bitcoin King,” Long insists mining is only a side venture. His primary business is running Sichuan Feier Aviation, a company specializing in flight simulation technology. This dual career path reflects a broader trend: many top crypto figures balance speculative ventures with real-world enterprises.
Core Keywords:
- Bitcoin mining
- Cryptocurrency profitability
- ASIC miner sales
- Electricity cost in mining
- Market volatility
- Bitcoin regulations
- Mining difficulty
- Peer-to-peer cryptocurrency
Regulatory Impact: The 2013 Crackdown
On December 5, 2013, China’s central bank and four other government bodies issued a joint notice titled On Preventing Bitcoin Risks. It clearly stated that Bitcoin “cannot and should not be used as currency in market circulation,” effectively blocking its integration into the formal financial system.
The impact was immediate. Prices on BTCChina plummeted from over $7,000 to around $4,680 — a drop of more than 30%. For miners like Long, this meant a 63% decline in daily revenue when measured against peak values.
Yet, rather than retreat, Long sees long-term opportunity. “The initial hype pushed prices to irrational levels,” he explains. “Many early holders were hoarding coins. A correction was inevitable.”
He believes the government’s move isn’t a death knell for Bitcoin — it’s a necessary step toward legitimacy. By discouraging speculative abuse and mandating registration for exchanges, regulators are helping weed out bad actors involved in money laundering or illicit activities.
Building a Compliant Future: A New Exchange Vision
Rather than resist regulation, Long is embracing it. He’s currently collaborating with partners to launch a fully compliant Bitcoin exchange platform, expected to go live by March 2025.
His proposed framework includes five core principles:
- Daily trading limit of 20 Bitcoins per account
- Daily withdrawal cap of ¥100,000 RMB (~$14,000)
- Mandatory real-name registration with signed risk disclosure agreements
- A ¥5 billion RMB (~$700 million) reserve fund to back platform stability
- Openness to oversight by financial regulatory authorities
These measures aim to build trust in an industry often criticized for opacity and risk. If successful, this model could serve as a blueprint for regulated digital asset platforms in restricted markets.
👉 Learn how next-gen platforms are reshaping trust in crypto trading.
The Hidden Costs Behind Mining Millions
Mining isn’t just about raw computational power — it’s a battle against cost efficiency.
Long’s operation consumes massive amounts of electricity: approximately $14,000 worth per day. Add in chip depreciation (~$60–$75 daily per rig cluster) and labor costs (~$800/day), and profit margins shrink rapidly — especially as Bitcoin prices fall.
At earlier prices near $2,100, Long was still netting $20,000–$30,000 daily after expenses. But now, with electricity eating up nearly 10% of gross revenue (up from just 3.6% previously), sustainability hinges on scale and access to cheap power.
This rising barrier to entry has transformed Bitcoin mining from a hobbyist pursuit into an industrial-scale operation dominated by large players with access to low-cost energy and advanced hardware.
The Fading Era of “Brick Moving”
Before regulation tightened, arbitrage traders — known colloquially as “brick movers” — profited from price differences between international exchanges.
At peak disparity, Chinese platforms traded Bitcoin at premiums up to 20% above global rates. Traders would buy on MtGox (Japan) or Bitstamp (Slovenia), transfer coins to domestic exchanges like BTCChina, and sell for instant profit.
But those days are fading. As Chinese investors flooded foreign markets, global prices rose while domestic prices fell due to selling pressure and regulatory fears. By late December 2013, the gap had narrowed to just 6–10%.
For many small-time arbitrageurs, the window closed completely — some even got “trapped” holding assets as prices reversed.
How Big Is China’s Bitcoin Community?
While exact numbers fluctuate, estimates suggest around 40 active miners in Chengdu alone. Nationally, China had become the world’s largest Bitcoin market by late 2013, accounting for roughly half of all daily transactions — about 100,000 BTC traded per day.
Much of this activity was fueled by domestic enthusiasm and accessible mining hardware. Long’s own sales of over 44,000 specialized mining chips reflect both technical adoption and grassroots interest.
Even today, despite regulatory caution, China remains influential in blockchain innovation and hardware development — particularly in ASIC manufacturing.
Frequently Asked Questions
Q: Is Bitcoin mining still profitable in 2025?
A: Yes, but only at scale and with access to low-cost electricity. Individual hobbyists often struggle to compete with industrial mining farms.
Q: Why did China ban Bitcoin transactions?
A: To prevent financial instability, curb money laundering risks, and maintain control over its monetary system. The 2013 notice didn’t ban ownership but restricted use as legal tender.
Q: Can individuals still mine Bitcoin effectively?
A: With modern ASIC miners and favorable energy rates, yes — but profitability depends heavily on location, cooling efficiency, and network difficulty adjustments.
Q: What happens when mining rewards halve?
A: Every four years, block rewards are cut in half (last occurred in 2024). Miners must rely more on transaction fees, increasing pressure on efficiency and fee competition.
Q: Are regulated crypto exchanges safer?
A: Generally yes. Platforms with KYC/AML policies, withdrawal limits, and reserve funds offer greater protection against fraud and collapse.
Q: How do electricity costs affect mining ROI?
A: They’re the largest ongoing expense. Operations in regions with sub-$0.05/kWh power have significantly higher margins than those paying $0.10+/kWh.
👉 See how top miners optimize energy use for maximum returns.
Final Thoughts: Volatility Is the New Normal
Long Yujiang’s journey illustrates both the promise and peril of early crypto adoption. From earning nearly $40 million annually at peak output to navigating post-crackdown uncertainty, his experience mirrors the broader market trajectory.
Bitcoin isn’t dead — it’s evolving. And for those willing to adapt — whether through compliance, innovation, or operational efficiency — opportunities remain.
As decentralization meets regulation, the future belongs not to speculators alone, but to builders who understand that real value lies beneath the blockchain.