Bitcoin Mining Thrives in China Despite Misinterpreted Ban
- Daniel Batten, a Bitcoin environmental impact analyst stated that despite widely spread news, Bitcoin mining was only temporarily suspended in China.
- China’s mining activities have contributed to 15% of the worldwide hashrate.
Daniel Batten, a Bitcoin environmental impact analyst has disclosed that Bitcoin mining was never officially banned in China. According to Batten’s new revelation, contrary to the widely spread news the so-called “ban” was a temporary suspension, and mining activities have largely resumed across the country.
Batten’s report highly focuses on China’s hashrate, a metric that focuses on the amount of computational power used in mining and processing Bitcoin, which currently accounts for 15% of the world’s total.
1/8
BREAKING: China never banned Bitcoin!
In fact China use Bitcoin mining for
wasted renewable energy harvesting
This picture says “Mining was suspended for a month then China let back the miners that served a purpose.
What purpose? We’ll get to that
— Daniel Batten (@DSBatten) June 6, 2024
wasted renewable energy harvesting
heat recycling
This striking revelation goes contrary to the widely spread news that reached news outlets in May 2021 reporting of a comprehensive crackdown on cryptocurrency transactions and mining operations by the Chinese government. Batten highlighted that the 51.1% drop in hashrate from 179.2 EH/s to 87.7 EH/s was temporary and misinterpreted.
If you are a disruptive student, and the principal sends you away from school, those ‘days absent from school’ don’t mean you’ve been expelled. It could mean you’ve merely been suspended. Batten explained clarifying the China situation.
Batten’s report can be further supported by top news outlets’ reports stating that following the ban, Bitcoin mining activity continued. Additionally, by December 2021, mining activity had rebounded to 19.1% of the global hashrate, as per Cambridge data, indicating recovery.
“We’ve talked to multiple mining companies and mining distributors in China. The message is clear: if you’re small, useful, and not using it to get money out of China, you’re welcome. This philosophy has made Bitcoin mining more distributed and more clean-energy-based.” Batten added.
China’s attempt to make good use of Bitcoin mining has started to gain fruition as it has taken a different and both innovative use of Bitcoin mining. China has reportedly included harvesting wasted renewable energy and recycling heat, pointing towards a more positive approach to Bitcoin mining. Batten also added that the local government also chips in and supports Bitcoin mining, particularly when it involves small-scale operations that contribute to local energy solutions
According to Batten, China is allowing a certain number of crypto miners to return to work, specifically, those who utilize renewable energy sources for their mining activities. Highlighting Inner Mongolia where this region has a lot of underutilized renewable energy, which they’re looking to turn into profit.
Furthermore, Batten revealed that Bitcoin mining is mostly hydro, much of which is sub-1MW meaning there is no longer off-grid coal-based mining anymore. This non-carbon strategy aligns with China’s 2060 vision to make her country carbon neutral thus the crypto mining ban is part of a broader plan to reduce energy intensity.
Jaran Mellerud from Hashlabs also supported Battern stating:
There are still several big miners operating in China. The local government lets them operate as they desperately need economic activity there.
At the time of writing Bitcoin is exchanging hands with $71,005, a 6% surge in the past week.
