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Tuesday, June 28, 2022

Bitcoin Mining Firms Thriving in China Despite Ban

Despite the ban on Bitcoin mining in China, the industry appears to be thriving. 

A report by CoinDesk published on May 17 says that — “according to the CCAF’s Bitcoin Electricity Consumption Index (CBECI), which maps the mining activity around the world based on the geolocational data reported by partnering pools” — China was the second largest Bitcoin mining hub (after the U.S.) between September 2021 and January 2022. The news comes despite the Chinese government’s crackdown on crypto mining last year, which saw the country’s share drop to 0% in July and August 2021. 

Latest data from CCAF indicates that China’s share was 22.29% in September 2021, and held steady around 20% through the rest of the year. 

The Coindesk report is based on article (titled “Bitcoin mining – an (un)surprising resurgence?”) published on May 17 by University of Cambridge’s Judge Business School.




This article states:

This strongly suggests that significant underground mining activity has formed in the country, which empirically confirms what industry insiders have long been assuming. Access to off-grid electricity and geographically scattered, small-scale operations are among the major means used by underground miners to hide their operations from authorities and circumvent the ban.

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Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

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