Last year, China had imposed ban on bitcoin mining. Back in 2019, China was leading as it accounted for around 76% of bitcoin mining. Now, data proves that there is a revival in China’s bitcoin mining activity. This serves as a great failure for the Chinese government as they had imposed the ban last year. First the hash rate went down, and after few months it surged to 21.1 %.
China’s different-phased ban turns ineffectual
China found Bitcoin to be more energy consuming and harmful for the environment. The country banned Bitcoin mining in three different phases. At first, it restricted financial institutions from engaging in any crypto activity. Later it banned crypto mining at domestic level and then in September, banned crypto outright. After that, there was a sharp fall in the hash rate of bitcoin mining activity.
As per the new data, it is observed that China’s bitcoin mining activity has made a major comeback as the second-largest bitcoin mining country, despite strict regulations.
The CCAF believes that there is a chance that not all the miners had quit entirely. Rather, they might be hiding their tracks using various techniques to deflect attention.
After the U.S., China is the leading bitcoin mining country
The CBECI reports shows an epic jump in the rate of bitcoin mining activities. The reports suggests that U.S.A. is the dominant player in bitcoin mining with 37.14%. After the U.S., China has ranked up as the second largest hub for bitcoin mining with 21.1%. Kazakhstan stands at third place with 13.22% whereas Canada has 6.48% of world’s hash rate.
📣📣New CBECI update shows US has extended its share of global hashrate to 37.84%, with China resurgent to second largest with 21.11%
For 1st time, update provides state-by-state granularity of US market share
Read details of update in blogpost at https://t.co/v2HzliQsrw pic.twitter.com/KlWr5dVTKV
— Cambridge Centre for Alternative Finance CJBS (@CambridgeAltFin) May 17, 2022
The reports indicate that the miners might have led the operations secretively. Somehow, this number had fallen in mid 2021. The stats had gone down to 0% in August 2021. To this, CCAF said that the slowdown might have occurred due to miners going underground.
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