It seems that China is dominating Bitcoin mining globally, managing 55% of the network, despite the ban imposed in the country. The CEO of CryptoQuant, Ki Young Ju, however, states that the USA is gaining ground, with the dominance of the bitcoin hashrate rising to 40%.
China and the dominance of Bitcoin mining even with the crypto ban
A real paradox, but China seems to be the country that dominates Bitcoin mining, managing as much as 55% of the network.
To say it is Ki Young Ju, CEO of CryptoQuant, who also pointed out that the USA, on the other hand, manage 40% of the network.
#Bitcoin hashrate dominance is shifting to U.S. mining companies.
Chinese mining pools operate 55% of the network, while U.S. pools manage 40%.
U.S. pools primarily cater to institutional miners in America, while Chinese pools support relatively smaller miners in Asia. pic.twitter.com/kepopLWBSD
— Ki Young Ju (@ki_young_ju) September 23, 2024
“#The dominance of bitcoin hashrate is shifting towards US mining companies. Chinese mining pools manage 55% of the network, while US pools manage 40%. US pools primarily cater to institutional miners in America, while Chinese pools support relatively small miners in Asia.”
In practice, Ki Young Ju highlighted that the dominance of the bitcoin hashrate is shifting towards the mining companies in the USA. The US mining pools cater to institutional miners in America, while the Chinese pools are expected to support relatively small miners in Asia.
These data, however, also highlight the Chinese paradox, namely that the crypto ban established in 2021 has not stopped the machines, but on the contrary, the country is the leader in Bitcoin mining.
China and bitcoin mining: the leadership despite the crypto ban
It was 2021, when China had issued a new ban against cryptocurrencies, with the Chinese Central Bank banning financial institutions and payment companies from providing services involving crypto transactions.
This Chinese crypto ban aims to highlight how the volatility of cryptocurrencies can make them an unreliable and unsafe product. Not only that, the statement also emphasizes that crypto has no realistic value and that it is extremely easy to manipulate.
The crypto ban of 2021 follows a previous ban of 2017, in which activities related to exchanges and ICOs were prohibited in China.
In any case, after a short period of stoppage dictated by fear, the Chinese Bitcoin mining machines have resumed functioning, becoming significant in the global market.
And indeed, already in May 2022, a research had revealed that China had already become the second country in the world for hashrate. At that time, the report “Bitcoin Mining Map” from the University of Cambridge saw the USA in first place with 38% of the global hashrate, while China in second with 21%.
According to these data, within two years, China has more than doubled its dominance in bitcoin mining, becoming the current leader of the global market.
The rumors about the revocation of the Chinese crypto ban
Recently, it emerged that China might lift the ban on Bitcoin in September 2024. At the moment, such reports are just rumors, meaning they are not official and confirmed decisions.
If this were the case, the impact on the price of BTC could be more than optimistic, given that on the contrary, in 2021 after the news of the Chinese crypto ban, BTC had collapsed.
In the meantime, the price of BTC seems to be holding above the 60,000$ threshold for seven days now.
In fact, at the time of writing, BTC is worth $63,620, in a pump of +8% compared to a week ago.