Chinese Bitcoin Miners Still Make up 65% of Global Operations Despite Ban
Quick overview
- The Chinese government has strengthened its cryptocurrency ban, yet Bitcoin mining continues to thrive in the country.
- Approximately 65% of global Bitcoin mining occurs in China, particularly in rural areas with less enforcement of cryptocurrency laws.
- Despite initial price drops following news of the ban, Bitcoin's value quickly stabilized as miners operate largely under the radar.
- Bitcoin mining in China remains lucrative, with over $52 billion traded daily, and production has increased significantly since the bans were implemented.
Live BTC/USD Chart
The Chinese government recently updated and strengthened their cryptocurrency ban, but that has not stopped Bitcoin (BTC) miners from mining coins in the country.
About 65% of all Bitcoin mining takes place in China, and that is in spite of the strict ban the government has placed on cryptocurrency holdings and trades of all kinds. Much of this mining takes place in the rural regions, however, where there is far less enforcement of cryptocurrency laws.
BTC/USDIn these parts of China, the law enforcement agencies are more concerned about traditional crimes than white collar or internet crimes. So, mining operations in China continue to account for a large portion of the global crypto mining efforts.
When news of the strengthened ban broke, the price of Bitcoin fell sharply, but that did not last long. Such price drops tend to be temporary as investors realize that government regulations do very little to curb the supply of new bitcoins. Most Chinese crypto miners work under the radar, staying out of sight of government workers so that they can continue to add to the total Bitcoin supply.
Bitcoin Supply Continues to Grow
Currently valued at $109,434 (BTC/USD) per bitcoin, BTC has a circulating supply of 19.88 million BTC. Its max supply is 21 million, though, so the coin is nearing its natura potential. As the number of bitcoins grows, the time and effort it takes to create new bitcoins increases. This is part of the halving measure that doubles the workload required for new bitcoins to be formed at various intervals in Bitcoin’s supply history.
Bitcoin mining has not abated because of strict regulations in China and Russia, but instead it has only grown. Many of those miners who were making their money by producing Bitcoin in China have fled to other countries, but most stayed and then many more have taken the place of those who have left the country.
This is a lucrative market with the potential for incredible profits even on the individual scale. With more than $52 billion in Bitcoin traded every 24 hours the need for bitcoin is very high, and these miners are meeting a pressing demand. When bans first went into effect in Russia and China back in 2021, many mining operations slowed down, but they have since ramped up. Now, more bitcoin production is taking place than ever before, with a large printing of that originating in China.
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