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

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.

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.

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