Bitcoin Miners in China Defy Crypto Mining Ban, Now Ranked 2nd in BTC Hashrate 10

Bitcoin Miners in China Defy Crypto Mining Ban, Now Ranked 2nd in BTC Hashrate

Summary:

  • Bitcoin miners based in China now control 21.1% of BTC’s hashrate.
  • China is now ranked second in Bitcoin’s hashrate, hinting at the existence of covert mining facilities.
  • This is despite China’s government reiterating in May 2021 its ban on Bitcoin mining and crypto trading.
  • Due to the ban, the dominance of Bitcoin miners based in China had dropped from almost 50% in May 2021 to 9% in July 2021.

China has once again reemerged as a significant contributor to the Bitcoin (BTC) network despite the country’s government reissuing a blanket ban on crypto mining back in May 2021. According to data from the Cambridge Bitcoin Electricity Index, Bitcoin miners based in China are now ranked second in terms of the total hashrate of the BTC network.

The United States is Now at the Top in terms of Bitcoin Hashrate.

The chart below, courtesy of the hashrate tracking website by Cambridge, shows China (yellow) slowly recovering its hashrate beginning mid-2021 and after the reissuance of the mining ban. Also, from the chart, it can be observed that the United States (pink) has slowly grown over the years to now provide a majority of Bitcoin’s hashrate.

Bitcoin Miners in China Defy Crypto Mining Ban, Now Ranked 2nd in BTC Hashrate 11
Bitcoin Hashrate as of May 2022. Source, CCAF.io/cbeci/mining_map

China Now Controls 21% of Bitcoin’s Hashrate

In terms of percentage, China now controls 21.1% of the global Bitcoin hashrate, with the United States at 37.8%. The chart below, also courtesy of the Cambridge Bitcoin Electricity Index website, highlights how China’s hashrate dominance (yellow) has fluctuated over the years.

Bitcoin Miners in China Defy Crypto Mining Ban, Now Ranked 2nd in BTC Hashrate 12
China (yellow) now has a 21.1% share of Bitcoin’s hashrate. Source, CCAF.io/cbeci/mining_map

The chart shows that China controlled almost 50% of Bitcoin’s hashrate before its government reissued a complete ban on Bitcoin and crypto mining back in May 2021. By July and August of the same year, China’s hashrate dominance had plummeted to 9.4%. However, the chart hints that Bitcoin miners started fresh operations by September of last year, resulting in China now controlling 21.1% of Bitcoin’s hashrate.

The Resurgence of Hashrate Points Towards Covert Bitcoin Mining Facilities in China

As to why China is now ranked second in Bitcoin hashrate, a recent report by Bloomberg concluded that the country has seen a sudden surge in BTC mining through ‘covert mining operations.’

China FUD Banning Bitcoin Mining Might be Around the Corner

To note is that China has banned Bitcoin and crypto mining on numerous occasions over the years, with the most notable being January 2018 and May 2021. The resurgence of Bitcoin mining activities in China could thus hint at another ban around the corner that might result in panic selling in the crypto markets, as was the case after the last two bans by the Chinese government.