Despite the ban: China remains a secret player in global Bitcoin mining
Despite the ban, China, the former largest crypto mining country, is making a comeback. Activity has increased significantly again.
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0.70 EUR 0.03 EUR 4.50%
currency
70,163.4501 CHF 74.6229 CHF 0.11%
75,298.8862 EUR 80.0847 EUR 0.11%
£65,924.5039 82.9771 GBP 0.13%
13,913,018.3106 JPY 14,797.3038 JPY 0.11%
$88,193.7882 $93.7992 0.11%
0.0000 BTC -0.0000 BTC -0.12%
0.0000 BTC -0.0000 BTC -0.07%
$1.1714 -0.0002 USD -0.01%
0.0000 BTC -0.0000 BTC -0.14%
0.0000 BTC 0.0000 BTC 2.68%
0.0000 BTC -0.0000 BTC -0.10%
0.8537 EUR -0.0003 EUR -0.04%
• Despite ban, China’s Bitcoin mining activity is at a high
• Upswing thanks to US President Donald Trump’s pro-crypto policies
• Mistrust in the US dollar is increasing
China was the largest crypto mining country until Beijing banned trading and mining of the cryptocurrency Bitcoin in 2021. The reasons for the ban were said to be threats to the country’s financial stability and energy conservation, according to Reuters. As a result of the ban, China’s global market share in Bitcoin mining fell to zero. The ban forced many miners to close their local operations and move to other markets, such as North America or Central Asia, the report continued.
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A boost for China’s Bitcoin mining scene
Due to US President Donald Trump’s pro-crypto policies and rising distrust of the US dollar, Bitcoin mining has become more attractive again, according to Reuters.
Hashrate index
According to the Hashrate Index, which tracks Bitcoin mining activity, China’s share grew to around 14 percent, putting the country in third place. Although Bitcoin mining remains banned in China, many miners – whether individuals or companies – are taking advantage of cheap electricity and the boom in data centers in some energy-rich provinces in China, according to Reuters. According to the report, mining is being carried out secretly to avoid the ban.
China’s Bitcoin mining activities
The second-largest maker of bitcoin mining machines, Canaan, generated 30.3 percent of its global revenue from China last year, according to company filings. In 2022 it was just 2.8 percent, according to Reuters. It goes on to say that China’s share has already risen to over 50 percent. Blockchain data and analytics company CryptoQuant estimates that around 15-20 percent of global Bitcoin mining capacity is operated in China, according to Reuters. CryptoQuant’s head of research, Julio Moreno, explains that despite the official ban from Beijing, there is still significant capacity in operation.
The Bitcoin market is generally characterized by high volatility. However, according to the Hashrate Index, China was able to stabilize again after the past turmoil.
Editorial team finanzen.net