According to a new report, the Chinese government failed to enforce its cryptocurrency prohibition last year, and China has resurfaced as one of the world’s major Bitcoin (BTC) mining centres.
According to the latest update from the Cambridge Bitcoin Electricity Consumption Index, China became the second-largest Bitcoin hash rate supplier in January 2022, months after the local government prohibited all crypto activity in the nation (CBECI).
Chinese bitcoin miners produced 21.1 percent of the overall worldwide BTC mining hash rate distribution in early 2022, following only the United States, which produced 37.8 percent of the total hash rate in January, according to the statistics.
In 2019, China was the world’s largest Bitcoin mining country, accounting for more than 75% of worldwide BTC hash rate power. The hash rate decreased to 0% in July and August 2021, following a string of crypto mining farm closures across the country.
Despite the crypto ban in September 2021, the hash rate share increased to 22.3 percent that month and never fell below 18 percent during the study period.
According to data from the Cambridge Digital Assets Programme, China has reemerged as a key Bitcoin mining hotspot, with clandestine miners accounting for more than one-fifth of the network’s hash rate (CDAP).
In June 2021, the Chinese government placed a blanket ban on Bitcoin mining. It was the latest move by authorities in the country to stop mining activities following years of conflict with the business. In September 2020, Chinese Bitcoin miners accounted for approximately 67 percent of network activity.
Read more: Shanghai High Court declares Bitcoin as virtual asset in China
