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China Re-Emerges As One Of The World’s Largest Bitcoin Mining Hubs

Reports said that the Chinese government has not managed to take down cryptocurrency operations as part of its crypto ban last year as China has re-emerged as one of the world’s largest Bitcoin (BTC) mining hubs.

It has been reported that China became the second-largest Bitcoin hash rate provider as of January 2022, months after the local government banned all crypto operations in the country, according to the latest update from the Cambridge Bitcoin Electricity Consumption Index (CBECI).

However, Bitcoin miners in China accounted for 21.1% of the total global BTC mining hash rate distribution as of early 2022, following only the United States, which produced 37.8% of the total hash rate as of January. China was once the world’s largest Bitcoin mining country, with the local BTC hash rate power accounting for more than 75% in 2019.

The report said that the hash rate then plummeted to 0% in July and August 2021, following a series of crypto mining farm shutdowns in the country. Despite the crypto ban in September 2021, the hash rate share surged to 22.3% that month and did not drop below 18% over the analyzed period.

Likewise, CBECI project lead Alexander Neumueller said that the new data is enough to conclude that Bitcoin mining is still live in China.

He added:

“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.”

The latest CBECI update also signals a slight drop in the hash rate share in Kazakhstan, the world’s third-largest BTC mining hub. Kazakhstan’s BTC hash rate share dropped from 18% in August to 13.2% in January.

Thus, the CBECI data also shows that miners now mine as much as 9% of the global BTC hash rate in undefined locations. Canada and Russia are the following major mining hubs, accounting for 6.5% and 4.7%.

Source: Cointelegraph


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