China Is Third-Largest Contributor To Global Bitcoin Mining: Why It Matters

Core Insights - China was historically the leading center for Bitcoin mining due to its cheap electricity and access to hardware manufacturers [1] - The Chinese government banned Bitcoin mining in 2021, with the People's Bank of China prohibiting all cryptocurrency transactions, citing financial crime risks [2] - Despite the ban, China still accounts for 14.05% of Bitcoin's total compute power, approximately 145 EH/s, indicating a slight increase from 13.8% in the previous quarter [3][4] Mining Operations - China is currently the third-largest contributor to global Bitcoin mining, following the U.S. and Russia [4] - The geographic distribution of Bitcoin mining indicates that regions like Xinjiang, known for its energy resources, may still host mining operations despite the ban [5] - The underground nature of Bitcoin mining in China highlights the challenges in completely shutting down operations, as miners can continue as long as they have electricity and hardware [6][7] Global Context - Other regions with illegal Bitcoin mining, such as Iran, are also experiencing growth, with an estimated 8 EH/s operational, representing 0.75% of the global market share [8]