Despite the ban, Chinese Bitcoin mining still accounts for 21% of the hashrate

English May 20, 2022

The Bitcoin network has shown extreme resilience. A recent document released by the Cambridge Digital Assets Program showed that China remains a major Bitcoin mining hub, with secret miners accounting for more than a fifth of the network's hash rate.

In June 2021, the Chinese government ordered a nationwide ban on Bitcoin mining activity. As of September 2020, Chinese miners accounted for around 67% of all network activity.

Since the ban, local authorities have heavily cracked down on Bitcoin miners causing the network's hashrate to plummet. However, in a short time, as it stopped having as much influence over the network, the miners quickly adapted to the new reality, whether by changing jurisdiction or making the operation secret. Levels returned to pre-ban time in December, and in February of this year, set an all-time high of 248.11 EH/s.

According to the Cambridge Digital Assets Program report, a considerable portion of Chinese Bitcoin miners found ways to adapt to the ban, using foreign proxy services to hide the activity and continue acting without having to leave the country.

While it would be ideal if the Chinese government changed its stance, understanding the global importance of Bitcoin and making the jurisdiction friendly to mining activity, we can see in the data in the report the anti-fragile, extremely resilient nature, of the Bitcoin network.

Tags

Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.