Bitcoin Miners Defy China’s Operating Ban revealed a recent investigation by the University of Cambridge. Despite the fact that the Asian giant has vetoed cryptocurrencies, mining has resurfaced in the country to the point of already placing it in second place. center in the world, second only to the United States.
The aforementioned study indicates that China already monopolizes over 21% of global installed capacity to mine Bitcoin. This marks the gradual resumption of activity after strong persecution by the authorities. Let’s not forget that between June and September 2021, transactions and mining of crypto assets on Chinese territory were blocked.
Of course, we are talking about levels that do not resemble those that this country knew how to record before the ban. When the blockade of Bitcoin and other cryptocurrencies occurred, China covered 44% of global mining. However, this return has allowed it to displace other important hubs such as Kazakhstan, Canada and Russia, which combined do not reach 25% of current mining capacity.
China’s resurgence in bitcoin mining linked to weaponry, analysts say a structure who operates clandestinely.
“This strongly suggests that significant underground mining activity has formed in the country, empirically confirming what industry experts have long assumed. Access to off-grid electricity and small-scale operations Geographically dispersed, they are among the main means used by underground miners to hide their operations from the authorities and circumvent the ban. […]
Over the time since the ban was imposed, it seems that underground miners have become more confident and seem happy with the protection offered by local proxy services. »
Cambridge University Research on the Resurgence of Bitcoin Mining in China
Bitcoin Mining Resurfaces in China,
The Chinese Bitcoin ban had a strong impact on the market, but also on a technical and environmental level. According to the researchers, the rate of hashes of the country, which represents its computing power, fell to zero between July and August last year. However, began to recover from Septemberjust as the Chinese government announced the ban on cryptocurrencies.
Since then, the United States has become the main center Bitcoin mining around the world. The North American country currently accounts for around 38% of installed mining capacity, and there is every reason to believe that it will continue to dominate the rankings for some time to come.
The rage to mine Bitcoin in the United States has been seen primarily in states where the primary economic activity is energy-related. Kentucky, for example, has historically depended on coal mining, so its electricity rates are very cheap. Additionally, BTC miners receive tax incentives for settling there.
What is certain is that China resurfaces in the mining sector of Bitcoin and attempts to reclaim the space he lost under pressure from his authorities. We’ll see if the clandestine operation pushes Beijing again to look for new methods to detect and stop the activity.