Despite being banned by Beijing, crypto mining is resurging in China

According to a Cambridge University study, China has re-emerged as a major mining hub despite a ban on the activity.

Bitcoin miners, which allow transactions to be validated and the creation of cryptocurrency, are once again detectable in China, despite the ban on their activity, while the United States remains the first country for this industry.

According to a study published on Tuesday, American miners now represent 37.84% of the activity, but “China has re-emerged as an important center of mining” at 21.11%, note in an article the researchers of the University of Cambridge, which analyze data collected between September 2021 and January 2022.

To make the decentralized bitcoin network work, processors validate transactions and prove their participation in the exercise by trying to guess the result of complex equations.

They receive in exchange new bitcoins, a very energy-intensive process in the case of bitcoin and called “mining” which was banned in mid-2021 in China. Result: the analysis of the University of Cambridge, which is a benchmark in the sector, no longer detected any minors in China in October 2021.

“An Underground Industry”

“It would appear that an underground industry has been created in the country, which confirms what industry players suspected. Access to off-grid electricity sources and a geographical scattering of small-scale operators are among the main means of circumventing the ban”, comment the authors of the study

According to them, it is likely that part of the activity continued at the end of 2021, but concealing the source of the mining.

The activity also continues to develop in the United States, particularly in the South where inexpensive sources of electricity can be found.

Finally, Kazakhstan, which had emerged as a major bitcoin mining site after the Chinese ban, suffered from political instability and power cuts in the country, after the riots and deadly demonstrations that rocked the country. in January, with a market share of only 13.22%.

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