Bitcoin mining bounces back in China as country takes second-largest global hashrate share

midian182

Posts: 8,307   +103
Staff member
In context: It appears that China's crackdown on crypto mining hasn't been as effective as its government hoped. The country's share of global Bitcoin mining operations has jumped from zero to almost a quarter, putting it behind only the US as the world's top BTC-mining nation.

In October last year, the US surpassed China for the first time to become the global crypto mining leader. The Asian nation had spent months clamping down even harder on cryptocurrencies and even declared all transactions using the virtual currency illegal.

China's tightening grip on the industry saw its share of the global Bitcoin hashrate fall from 75% in September 2019 to zero. But the latest Cambridge Centre for Alternative Finance (CCAF) report shows a resurgence in the country between September 2021 and January—it now stands at 21.1%, second only to the United States' 37.8%.

The CCAF writes that China's rise is down to covert mining operations. "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," the organization said in a statement.

The figures are based on aggregated geolocational data reported by partnering mining pools. As many miners in China are likely hiding their locations using foreign proxy services such as VPNs, the country's share of the global Bitcoin hashrate could be even higher than the report suggests.

It seems China's temporary decline was a result of miners going underground. "It takes time to find existing or build new non-traceable hosting facilities at that scale," the CCAF said. "It is probable that a non-trivial share of Chinese miners quickly adapted to the new circumstances and continued operating covertly while hiding their tracks using foreign proxy services to deflect attention and scrutiny."

"As the ban has set in and time has passed, it appears that underground miners have grown more confident and seem content with the protection offered by local proxy services," the center added.

Sitting behind China on the global hashrate list is Kazakhstan with 13.22%, followed by Canada and its 6.48% share. As for individual US states, Georgia is the hashrate leader with 30.8%, followed by Texas and Kentucky.

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defaultluser

Posts: 507   +389
Bitmain for their ASIC production also uses TSMC for 5nm chips and indirectly influences gpu availability and prices


Also, because lots of GPU mining tools automatically convert less popular cryptos to BTc, they are forever attached at the hip.
 

Squid Surprise

Posts: 5,335   +4,982
I suspect it's not so much "going underground" as simply "bribing the right people"...

Even with "off the grid" electricity, it would be a fairly simple matter for the authorities to crack down... if they wanted to... I'm sure there are plenty of officials making plenty of "off the grid" cash as a result of this :)
 

terzaerian

Posts: 1,517   +2,259
Bitmain for their ASIC production also uses TSMC for 5nm chips and indirectly influences gpu availability and prices
If you're going to blame *anyone* using your precious, God-ordained foundry share for your lack of frames in Call of Fortnite XXXIV, then why aren't you blaming auto and appliance manufacturers?
 
If you're going to blame *anyone* using your precious, God-ordained foundry share for your lack of frames in Call of Fortnite XXXIV, then why aren't you blaming auto and appliance manufacturers?
Obviously, because they are not using high end 5nm process to produce tools for wasting enormous amounts of energy to propel a giant Ponzi scheme.
 

BuckarooBonzaii

Posts: 169   +123
I'd be scared if I was an underground miner in China. If China can execute corrupt business people (billionaires included), criminals and Politicians they'll probably do it to miners too. Those executed in the past had one thing in common to miners, money!!
 

NightAntilli

Posts: 927   +1,186
Seriously with that? What is this, high school antics?
goal-post-moving.gif
 

captaincranky

Posts: 19,127   +8,245
Then why are prices and availability still crap? That market adjusts a lot faster than most.
GPU prices are down. Asus on particular has restocked some low end 166x models. However, distributors like Newegg are still stuck with cards they paid higher dealer cost for.

And well, scalpers frankly haven't gotten the memo yet. You can buy a GTX-1660 GDDR6 Asus card for $220.00 (**),. Erstwhile some a**hole is still trying to get $360.00 for a used one.

(**) While that us still above MSRP, one has to figure in price hikes and tariffs into that number, it isn't altogether unreasonable.
 

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