U.S. Is Winning Bitcoin Mining Race But China Still Not Out Of Picture: Report

 U.S. Is Winning Bitcoin Mining Race But China Still Not Out Of Picture: Report

China’s underground Bitcoin mining hashrate contributes 22% to global mining hashrate as it increases by 3% in the three months leading to January, 2022 amidst government crackdown. Per data from a chart provided by Cambridge Bitcoin Electricity Data, mining hashrate seems to be on the increase in Mainland China despite the government crackdown on Bitcoin mining.

China contributed over half of global BTC hashrate in January, 2022

On the chart presented by the university, China’s hashrate reached 22% of global hashrate in January of this year, second only to the US which contributes 37.84% average monthly hashrate. Kazakhstan comes third with a hashrate of 13.22%.

China contributed to over half of global Bitcoin hashrate in January, 2021, standing firmly at a rate of 53% with the United States coming second at a contribution rate of 10.55%. China’s hashrate gradually and persistently decreased the following months following the country’s heated efforts at clamping down on BTC mining.

The Chinese government intensified its antagonism towards Bitcoin and Bitcoin mining mid last year as it stepped up its attempts at enforcing the ban on Bitcoin, forcing mainstream mining firms to cease operations in the region.

Bitcoin trading volume in China took a nosedive when the country’s capital and second most populous city Beijing officially placed a ban on the digital asset in 2017. The Chinese government has since then occasionally expressed its disapproval of the asset.

Chinese Bitcoin mining ban not proving effective

As part of efforts to enforce the ban, a committee led by the Vice Premier of China, Liu He revealed moves to clamp down on Bitcoin mining operations within the country mid last year – efforts that saw mining companies like BTC.TOP and Huobi Mall suspend operations to seek shelter abroad.

The heated efforts saw BTC tumble by 50% around that time as there arose some major FUD within the crypto space which saw investors capitulate their holdings in preparation for what might come next.

Despite the ban, mining operations have gradually picked up again in China, surpassing other countries besides the US, with miners resorting to underground activities in the bid to circumvent government legislation.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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