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.

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.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Latest posts

post-thumbnail
Chainlink’s CCIP Enables Seamless Onchain Payments for XPay by XSwap
XSwap has adopted Chianlink’s CCIP for its new XPay tool, ensuring secure and efficient onchain pa...
READ MORE
default post thumbnail
Legendary Trader Warns: Bitcoin Could Plunge Below $50,000 If These Key Levels Break
Renowned trader Peter Brandt recently provided insights on the Bitcoin price potential market moveme...
READ MORE
default post thumbnail
Dogecoin Sees Monumental Surge In Transactions As Whales Spend $129 Million
Dogecoin is currently at a critical price junction that might determine its price trajectory in the ...
READ MORE
default post thumbnail
MATIC Price Tests 8-Month Support As Polygon Unveils New Governance Hub
Polygon’s native token, MATIC, has experienced a notable disparity compared to the broader cryptoc...
READ MORE
default post thumbnail
Ethereum HODLers Scoop 298,000 ETH In 24 Ahead Of Spot ETF Trading
Ethereum is under pressure at press time, tumbling roughly 15% from March 2024. As sellers press on,...
READ MORE
default post thumbnail
Ethereum Withdrawals From Coinbase Top $1.2 Billion, What’s Going On?
Ethereum has seen a number of notable withdrawals that suggests that crypto whales are expecting a r...
READ MORE
default post thumbnail
Dogecoin Plunges 11%, But This On-Chain Cushion Could End Decline
Dogecoin has observed a plummet of 11% over the past week, but this decline may not continue further...
READ MORE
default post thumbnail
Polkadot (DOT) Token Utility
Polkadot is a protocol designed to connect different blockchains, enabling the transfer of value and...
READ MORE
default post thumbnail
Bitcoin-Focused Book Inspired Bill To Abolish Federal Reserve
US Congressman Thomas Massie has said that he was inspired by a Bitcoin-focused book, The Bitcoin St...
READ MORE
default post thumbnail
UwU Lend Offers $5M Bounty For Information On Attacker
The team behind the UwU Lend protocol has offered a $5 million bounty to whoever can identify its at...
READ MORE
Read more posts