China returns to the Bitcoin mining race despite the suppression order from the government

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2022-05-19 02:29:32

According to the most recent data from the Cambridge Center for Alternative Finance (CCAF), a large number of miners in China appear to have resumed operations as of September 2021. The country’s contribution to the Bitcoin mining network is currently second only to the United States.

China returns to the Bitcoin mining race despite the suppression order from the government

Chinese mining pools are back

In fact, China once again contributes a significant portion of the world’s Bitcoin mining despite last year’s ban. From September 2021 to January 2022, China still holds the second largest market share in terms of overall hashrate network hashrate (21.11%), behind the United States (27.69%).

China used to be the largest Bitcoin mining country in the world with a BTC hash rate of over 75% in 2019.Until last year, the Chinese Government took a harsh stance against Bitcoin miners, blaming them for everything from wasted energy to deadly coal mining accidents when the Government had to deal with it. continue to strive to achieve the national carbon neutrality goals.

The demand to regulate Bitcoin mining and trading activities has caused the market to start to plunge for the first time in 2021. culminating in the “comprehensive general election ban” in September, “the last drop of water” has resulted. a big correction, the market was flooded in red. The world’s biggest mining pools also give up and block Chinese IPs.

One of the most obvious consequences is a drastic drop in hashrate, as well as a reallocation of the worldwide BTC mining market share. As a result, the US has risen to the top of the world in Bitcoin mining hashrate, China “evaporated” from the map.

According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), China’s hashrate plummeted to 0% in July and August 2021. Despite the government’s crackdown, a month later the hash rate rose to 22.3%, sparking the theory that the miners were hiding rather than actually pulling the plug.

Miners have tapped the external power grid and launched small-scale mining operations that are geographically dispersed to conceal the identity and eyes of the government. From what has been recorded, there is enough data to confirm that Bitcoin mining still exists in China.

Mining situation in some other countries

Overall hash rate statistics among some of the top mining pools in the world. Source: CBECI

Due to the growing presence of mining operations in the US (37.84% market share), the CCAF also started looking at the data state by state. As of January 2021, the top 3 states in terms of hash rate named Georgia (30.76%), Texas (11.22%), and Kentucky (10.93%).

Bitcoin mining hash rate distribution in the United States as of December 31, 2021. The source: Cambridge Alternative Finance Center

CBECI also signaled a slight drop in hash rate in Kazakhstan, the world’s third-largest BTC mining hub and a miner-friendly destination. The hashrate in the country has dropped from 18% in August 2021 to 13.2% in January 2022.

Russia “falls” into the top 3 of the world’s mining pools. Mining in Canada is growing at a modest rate. Despite a slight increase in the hash rate, Canada’s share actually fell from 9.55% to 6.48%.

The CCAF is currently working on a new model that estimates the network’s greenhouse gas emissions on an ongoing basis.

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