China Re-emerges As The 2nd Largest Bitcoin Mining Hub Despite The Ban On Mining In 2021

China has become the second largest mining hub in 2022 despite a ban on cryptocurrency operations in the country last year. According to a recent report by the Cambridge Bitcoin Electricity Consumption Index (CBECI), China still controls 21.21% of Bitcoin monthly average hashrate. The report seen by Cryptoinfowatch on May 17 shows Bitcoin hashrate distribution in top mining countries and also the distribution within US and China.

A Mining Powerhouse

The re-emergence of China as an industry giant in mining may surprise many industry analysts considering that the country’s local governments placed a ban on cryptocurrency mining in 2021. The organization’s data shows that the country’s hashrate has been dropping since September 2019, when Cambridge study started tracking the global hashrate of countries.

Trailing The United States

China’s Bitcoin hashrate is second only to the United States, which controls 37.8% of the global monthly BTC hashrate. The January 2022 statistics shows that CBECI BTC Hashrate report

Kazakhstan is the third leading Bitcoin mining hub with a monthly average hashrate of 13.2%. Canada is the fourth largest BTC mining hub, with a monthly hashrate average of 6.5%. The Russian Federation follows closely with 4.7%, Germany 3.1%, Malaysia 2.5% and Ireland, 2%, Iran, 0.1% and others, 9%.

China has severally made moves against Bitcoin and cryptocurrencies in general. In 2017, the country moved against exchanges, forcing some of the cryptocurrency businesses to move out of the country. As expected, the 2021 ban on Bitcoin mining had far-reaching impact on the country’s mining capacity.

The US Overtakes China

It is interesting to note that by February 2021, China led the global hashrate by 51.6%. This was when the US held 13.4% of the average monthly hashrate. The US became the dominant hashrate holder by September 2021 after China banned mining of cryptocurrencies. The country’s hashrate dropped to 22.3% while that of the US climbed to 27.7% in the same month.

The Cambridge Bitcoin Electricity Consumption Index (CBECI) report shows that China’s average monthly Bitcoin hashrate has decreased over time. However, in 2021, the year that the local governments moved against coin mining, the monthly average remained at 18.1% in two consecutive months of October and November 2021. This happened immediately after the September ban on cryptocurrency mining in the country.

A Resurgence in China Mining Power

However, country data from the next two months of December 2021 and January 2022 shows that the average monthly hashrate in China is began to rise. In December, 2021, the country’s global hashrate was 19.1%. It rose to 21.1% in January 2022.
China’s Bitcoin policy has been instrumental to the drop in the hashrate controlled by mining entities in the country. China controlled 75.5% of average Bitcoin hashrate in September 2019. This was when the United States monthly average was just 4.1%.

Bitcoin Hashrate Distribution in The US

CBECI BTC Hashrate report

The study by the Cambridge Centre for Alternative Finance also showed the distribution of Bitcoin hashrate in the United States. The report shows that the state of Georgia controls the highest percentage of hashrate in the US, with 30.8%. It is followed by Texas with 11.2%. Kentucky is third with 10.9%, followed by New York with 9.8%. Others are California, North Carolina and Nebraska controlling 7.9%, 4.7% and 4.7% respectively. Washington controls 4.1%, while Colorado controls 2.5%. The remaining states hold 13.3% of the Bitcoin hashrate in the country.

BTC Hashrate Among China Provinces

Xingjiang province of China leads in average monthly Bitcoin hashrate of 32.2% based on June 2021 stats. Yunan controls 13% of the hashrate in China. The third province is Gansu with 1.8%, Beijing controls 1.6%, Shanxi, 1.4%. Inner Mongolia controls 0.1% while others share 6.6% as of June 2021.

Author: Jinka Kamma

Jinka Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.

Leave a Reply