The mining industry in China has rebounded a year after a blanket ban was put in place
China has regained its position as one of the world’s leading mining centres, despite a government crackdown last year.
New data from the University of Cambridge reveals that bitcoin mining has returned to China’s leading position in the world order
Government officials in China want to halt crypto-mining activities in June 2021, citing environmental concerns.
Chinese bitcoin mining has reemerged as a major worldwide centre, according to new statistics provided by the Cambridge Centre for Alternative Finance (CCAF) on Tuesday.
Almost a year after China’s government clamped down on big domestic operations, the analysis shows that China is currently second only to the United States in terms of mining activity.
With a 21.1% mining capacity, China has reemerged as a key mining centre, followed by Kazakhstan (13.22%), Canada (6.48%), and Russia (4.66 percent ). With a 37.84 percent share of the overall hash rate activity, the US has established itself as a clear leader.
The overall global hash rate – the network’s total computational capacity – was measured from September 2021 to January 2022.
According to the CCAF’s most recent findings, a rise in China’s hash rate in September 2021 to 30.47 exahashes per second (EH/s) would be the outcome of covert actions.
Underground miners utilise a variety of methods to avoid detection and work around the restriction, according to the study, including using off-grid power and dispersing their activities regionally.
Last year, China’s State Council, a cabinet-level administrative agency, started directing different provincial governments around the nation to begin preparing themselves for the end of mining activities.
Qinghai, a province in China’s north, was one of the first jurisdictions to shut down all of its crypto mining activities a month later. The Chinese Communist Party ordered other provinces to follow likewise, citing environmental concerns.
Near zero percent of the global bitcoin hash power is now being generated in China, a result of the departure of significant mining operations from China to other countries.
CCAF digital assets head Michel Rauchs said in a letter in October that the Chinese crackdown has resulted in an expanded geographic spread of hash rate throughout the globe, which is a good development for network security and the decentralised ideals of Bitcoin.