Despite China’s nationwide ban on cryptocurrency mining and trading, Chinese Bitcoin miners continue to dominate the global mining network. As of September 2024, over 55% of the Bitcoin network is controlled by Chinese mining pools, according to CryptoQuant CEO Ki Young Ju. However, U.S.-based mining firms are catching up, with a growing 40% share of the global mining network.
Chinese mining pools support smaller miners across Asia, while U.S. mining pools are primarily focused on institutional miners within the country. Ki Young Ju highlighted this dynamic in a recent report, showing that despite strict regulations in China, the country’s miners maintain a strong hold on the Bitcoin network. U.S. mining pools are gradually increasing their presence, reflecting a shift in mining dominance.
The data was shared on September 23, 2024, revealing how Chinese mining pools continue to operate despite the country’s strict ban on cryptocurrency activities, which was enforced in 2021. As of now, Chinese miners still control a significant portion of the Bitcoin network, while U.S. mining firms steadily expand their influence.
Chinese mining pools operate across various regions in Asia, despite the country’s ban, while U.S. mining pools have established themselves as major players, catering to a large institutional market. The global competition between Chinese and U.S. miners underscores the battle for dominance in the crypto mining space.
China’s surprising grip on Bitcoin mining is largely due to the decentralized nature of cryptocurrencies, which allows miners to bypass the 2021 ban. Meanwhile, China plans to strengthen its Anti-Money Laundering (AML) laws in 2025, specifically targeting cryptocurrency transactions to reduce risks of money laundering. These amendments could further challenge Chinese miners’ operations.
Chinese miners, despite the ban, continue to find ways to mine Bitcoin through underground operations. At the same time, U.S. mining pools are expanding rapidly by catering to institutional miners. Globally, Bitcoin miner revenue dropped in August 2024 to $827.56 million, the lowest in a year. The number of Bitcoin mined also declined slightly during the same period, reflecting the ongoing challenges miners face.
Though U.S. miners are gaining ground, China’s stronghold on more than half of the Bitcoin network demonstrates the resilience of its crypto mining community, even in a heavily restricted environment.
