A government’s crackdown on Bitcoin mining was one of many major steps that rocked cryptospace. China increased its pressure on miners by increasing the number of crackdowns. This led to the exodus masive of bitcoin miners from what was considered the mining capital. Around this time the regional mining hashrate had dropped to near zero.
The country was experiencing a shortage of miners, so they had to move quickly their mining equipment and look for new homes. Although the bitcoin price and hash rate suffered significantly during that time, miners were able to find their feet in new places, such as the United States. While the China crackdown was quick and severe, not all bitcoin miners were affected.
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Bitcoin Miners Still Remain in China
CNBC’s new report has revealed that active Bitcoin miners remain in China. According to the report, 20% of bitcoin miners are still active in China.
The report follows ‘Ben’, a bitcoin miner who continues to operate in the region. The miner shared that they had to move underground in order not be caught by Chinese authorities. Ben and his fellow miners continue to mine while inventing new ways to get around detection.
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It was stated in a report from Cambridge University that mining activities had ground to a halt in the country, putting China’s mining share at 0% but Ben and other miners who remain would beg to differ. The miners managed to hide their hash rates, leading others around the globe to think that it is much lower than it is.
“A pool doesn’t have to reveal any data,” said Ben. “You’re basically telling the world that my revenue is only half of what I actually have. You don’t brag about it.”
The Mining Industry Continues
China’s crackdown on mining was mainly due to energy scarcity. Due to their energy-intensive activities, Bitcoin miners were identified as being the problem. Authorities banned mining to try to restore power.
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Many mining operations are dependent on the electricity consumption of particular users. Ben found an alternative to this. His operation is spread across many locations, and he draws only power from local sources.
Qihoo 360, an Chinese cybersecurity company reported that in November there were still approximately 109,000 crypto mining addresses active daily in the region. While this number is considerably lower than the peak of bitcoin mining, it puts China at the forefront when it comes to cryptocurrency mining.
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