Beijing-based investor Nick Ni is the part owner of a bank of computers that generates Bitcoins.
Bitcoin is what is known as a digital crypto-currency and is traded around the world.
Mr Ni says it can be a lucrative investment.
"I'm a businessman and it's in our nature to chase the money. Once I understood the Bitcoin business the profit potential became clear."
Nick Ni began investing in Bitcoin five years ago, selling online to buyers all over the world.
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His machines generate tens of thousands of dollars worth of Bitcoin every month.
But now, he says, the venture isn't earning him as much as it used to.
Bitcoin's value dropped more than 30 per cent after China's central bank, or PBOC, announced it would conduct spot checks of the country's top Bitcoin exchange platforms.
The bank also signalled tougher regulations for Bitcoin trading.
Bloomberg technology reporter David Ramli says the bank could be attempting to counter the suspected use of the currency in crime.
"It's hard to know exactly what the PBOC wants, but in a statement about these visits it did say it was looking to clamp down on potential money laundering. So it's very evident that they are watching out for Bitcoin being used as a way to get money out of the country, or rewashed"
The Chinese government has been cracking down on money it says is flowing out of China illegally to relieve pressure on the falling Yuan.
Bitcoin is suspected of being used to evade the strict rules for overseas transactions.
But entrepreneur Neil Woodfine, who is based in the Chinese capital, says the currency's slightly higher value in China makes it impractical for money laundering.
"A lot of people think a lot of the interest in Bitcoin in China is because of its ability to facilitate capital outflows. Actually, Bitcoin is a terrible method for sending money out of China. What you have in China is something - what we call the 'Bitcoin premium'. The price of Bitcoin is slightly higher in China. Bitcoin's value proposition is that it's a hedge against inflation."
Mr Woodfine helps overseas businesses send payments to China using Bitcoin.
He says the central bank is trying to stabilise the currency and protect investors, arguing the tighter regulations will be good for Bitcoin's long-term viability.
Still, the move has shaken some investors.
He Sen says he is moving his money from Bitcoin into newer, more covert digital currencies.
"Government interference will largely kill the value of young digital currencies like Bitcoin."
China has dominated the Bitcoin trading market since the currency was created eight years ago.
But now, the central bank is watching closely.
Officials are starting site inspections at Bitcoin exchanges this month.
Technology reporter David Ramli says any crackdown is likely to have an impact around the world.
"Much of the boom in Bitcoin has been largely thanks to the rising intervention of Chinese miners and Chinese traders so anything that greatly clamps down on that will have a direct impact on the global price of Bitcoin. The price of Bitcoin very much lives and dies on what the Chinese government does."
Veteran investor Nick Ni say he and others are used to Bitcoin's rollercoaster volatility, and intend to stick with the currency.
"The profit from Bitcoin mining is high, and so long as beats other forms of investment I'll keep building on it."
