China slowly rebounds as a major hub for Bitcoin mining
About a year ago, the Chinese government threw the entire crypto market into a state of panic following intensified efforts to clamp down on Bitcoin mining activities. As reported by BTC PEERS, several provinces moved to outlaw crypto mining activities, resulting in the mass exodus of miners out of the region.
However, despite being technically outlawed in China, Bitcoin mining is slowly regaining its ground in the country. According to data from the University of Cambridge, the country is now the second-largest contributor to Bitcoin’s global hash rate, closely following the United States.
China is currently contributing about 21.1% of the global BTC hash rate. The US is leading the pack with 34.7%, and Kazakhstan is back in third place with 13.2%.
China’s share of the global hash rate began falling even before the official ban on mining. This was intensified by the clampdown on mining operations. Notable, the Cambridge Bitcoin Electricity Consumption Index recorded no activity from Mainland China for a brief period in the latter half of 2021. CBECI project lead Alexander Neumueller told Cointelegraph:
Our data empirically confirms the claims of industry insiders that Bitcoin mining is still ongoing within the country. Although mining in China is far from its former heights, the country still seems to host about one-fifth of the total hash rate.
It is safe to assume that the stringent stance of the government was not able to crush Bitcoin mining operations in China. Instead, miners have found creative ways to evade officials.
