Chinas Bitcoin Mining Activities Resurge, Now at 14% of Global Market Share
Autor: Mining Provider Editorial Staff
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Kategorie: News
Zusammenfassung: China is re-emerging in the Bitcoin mining sector, now accounting for about 14% of global activities despite a previous ban, with many miners operating covertly using cheap electricity. Canaan's revenue from China surged significantly, indicating a revival in local mining operations.
China Resumes Bitcoin Mining Activities
Despite a previous ban, China is making a comeback in the Bitcoin mining sector. The country, which was once the largest player in cryptocurrency mining, saw its market share drop to zero after Beijing prohibited Bitcoin trading and mining in 2021, citing threats to financial stability and energy conservation as reasons for the ban, according to Reuters.
As a result of this ban, many miners were forced to shut down their local operations and relocate to other markets, such as North America and Central Asia. However, recent developments indicate a resurgence in China's Bitcoin mining activities, with the country now accounting for approximately 14% of global Bitcoin mining, placing it in third position worldwide.
"Despite the official ban from Beijing, a significant capacity remains operational," says Julio Moreno, research director at CryptoQuant.
Many miners, both individuals and companies, are reportedly utilizing cheap electricity and the boom of data centers in energy-rich provinces to continue their operations covertly. The second-largest manufacturer of Bitcoin mining machines, Canaan, reported that 30.3% of its global revenue came from China last year, a significant increase from just 2.8% in 2022.
According to estimates from CryptoQuant, around 15-20% of the global Bitcoin mining capacity is currently being operated in China. The Bitcoin market remains highly volatile, but the Hashrate Index indicates that China has managed to stabilize its mining activities following previous turbulence.
Key Takeaways:
- China's Bitcoin mining market share has risen to approximately 14%.
- Canaan reported a significant increase in revenue from China, indicating a resurgence in mining activities.
- Estimates suggest that 15-20% of global Bitcoin mining capacity is still operational in China despite the ban.
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