China's Bitcoin Mining Activity Sees Major Resurgence Despite Ban, Shows Data

Traffic from China contributed to around 20 percent of Bitcoin’s overall hash rate from September last year to January.

China's Bitcoin Mining Activity Sees Major Resurgence Despite Ban, Shows Data

Photo Credit: Unsplash/ Executium

China has returned as second Bitcoin mining hub despite the recent crypto ban

Highlights
  • The US still leads the world in Bitcoin mining activity
  • Chinese miners have largely moved underground with their operations
  • Bitcoin mining numbers in China had fallen mid 2021

China is back again as a key center for Bitcoin mining, despite the country outright banning the activity one year ago. The Cambridge Bitcoin Electricity Consumption Index (CBECI) provided by the Cambridge Centre for Alternative Finance (CCAF) shows that Chinese Bitcoin mining activities have rebounded, and it's currently the second-largest in the world — contributing to 21.1 percent of the overall global BTC hash rate, right behind the US which holds 37.8 percent of the total hash rate.

As per statistics, mining activity in China made a swift recovery last year. After exhibiting almost no activity from China in August, the following month it was back up to 22.3 percent of the Bitcoin hash rate, coming in just behind the United States, which was at 27.7 percent.

The Cambridge Bitcoin Electricity Consumption Index (CBECI) is something that the CCAF puts out on a regular basis and is compiled using the geolocational data supplied by partnering mining pools.

The CCAF notes in a statement that the data "strongly suggest that significant underground mining activity has formed in the country. Access to off-grid electricity and geographically scattered small-scale operations are among the major means used by underground miners to hide their operations from authorities and circumvent the ban."

According to CCAF, the momentary slowdown may have been caused by miners moving underground, given the sudden rebound in Chinese traffic.

China has long been the world's largest Bitcoin mining nation, with the native BTC hash fee energy accounting for more than 75 percent of the global power demand in 2019. The hash price subsequently plummeted to 0 percent in July and August 2021, owing to the closure of the crypto mining farms throughout China by the government.

Globally, the Bitcoin network's aggregated computing power has been on a rise. Last June, the worldwide aggregate compute capacity stood at 57.47 exahashes per second (EH/s), however it hit an all-time high of 248.11 EH/s in February, according to CCAF.


How is Alexa faring in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.

Cryptocurrency Prices across Indian exchanges

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Bharti Airtel Registers Two-Fold Jump in Its Consolidated Net Profit for March Quarter
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.