𝙎 𝙀 𝘾𝙊𝙉𝙏𝙍𝙊𝙇𝘼 𝟓𝟓 𝘽𝙄𝙏𝘾𝙊𝙄𝙉 𝘿𝙊 𝙈𝙐𝙉𝘿𝙊
Despite the severe restrictions imposed by the Chinese government on cryptocurrency mining and trading since 2021, China remains the dominant power in global Bitcoin hashrate, controlling 55% of the global network.
This surprising statistic defies expectations that the country would lose its influence in the Bitcoin mining sector following the ban.
Hashrate refers to the power The computational power used in the Bitcoin network to validate transactions and secure the system. The higher the hashrate, the more robust and secure the network.
Despite legal restrictions, miners in China continue to dominate this activity. The Asian country surpasses the United States , which own 40% of the global hashrate. The ability of Chinese miners to stay on top despite the bans may have something to do with the decentralized nature of Bitcoin and the creativity of the country’s operators.
Underground cryptocurrency mining and trading networks continue to operate, often using VPNs and other methods to circumvent regulations. According to estimates, illegal cryptocurrency transactions in China generate approximately $86 billion annually.
In addition, Chinese mining pools have proven resilient, supporting small miners operating locally. This contrasts with the large US mining pools, which are dominated by institutional operations with access to cutting-edge technology and vast financial resources.
