China controls 55% of Bitcoin mining, despite the 2021 ban. What’s going on?
Despite China’s stringent 2021 ban on cryptocurrency mining and trading, Chinese miners still dominate the Bitcoin network, holding a staggering 55% of its global mining power. According to Ki Young Ju, CEO of CryptoQuant, the world’s largest digital asset markets remain heavily influenced by Chinese mining pools. But a shift is brewing.
In a recent post, Ju revealed that while China controls over half of Bitcoin’s mining power, U.S. mining firms have steadily gained ground, now managing 40% of the network. Unlike Chinese pools, which cater to smaller miners across Asia, U.S. mining pools primarily serve institutional miners. The race for mining dominance is tightening.
This persistence of China’s hold on Bitcoin mining, despite government regulations, is fueled by the country’s tech-savvy users finding loopholes to stay involved.
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However, with China planning to revamp its Anti-Money Laundering (AML) laws by 2025, stricter regulations on cryptocurrency transactions could be in the pipeline.
Meanwhile, rumors of a Bitcoin “unban” in China by late 2024 have sparked intrigue. Galaxy Digital’s CEO, Mike Novogratz, hinted at potential shifts in China’s stance toward crypto, raising speculation about what might come next.
Globally, Bitcoin miners are feeling the squeeze. August 2024 marked the lowest miner revenue in a year, with earnings dropping to $827.56 million—over a 10% decline from July.
Although Bitcoin prices hovered around $25,000, the number of coins mined in August decreased to 13,843 BTC, compared to July’s 14,725 BTC.
As competition tightens and global regulations loom, the future of Bitcoin mining is set to be a high-stakes game between East and West.
