Bitcoin mining booms again in China

Photo caption — Bitcoin digital currency. Photo: AFP/TTXVN

Statistics from platforms that track Bitcoin mining activity show that China has returned to the market leadership group after a period of disappearing from the global mining map.

After becoming the world's largest Bitcoin mining center, China imposed a ban on cryptocurrency trading and mining in 2021 to protect financial stability and reduce energy consumption. Its Bitcoin mining market share then fell to almost zero. However, new data from Hashrate Index shows that by the end of October, China had risen to third place globally with a 14% market share.

The recovery is reflected in surging sales at mining equipment makers like Canaan, which saw 30.3% of its global revenue come from China last year, up from 2.8% in 2022. One source said the Chinese market’s contribution rose to more than 50% in the second quarter of this year, amid uncertainty over US tariffs and volatile Bitcoin prices.

While Beijing has yet to formally loosen the rules, operators say the space for the activity is expanding again. One miner in Xinjiang said he started mining Bitcoin again late last year thanks to the surplus electricity that the region has difficulty transmitting. He also said that cryptocurrency miners often seek out low-cost electricity to operate, so Bitcoin mining is particularly active in areas with abundant electricity sources such as Xinjiang and Sichuan.

The recovery comes as Bitcoin hit a new high in October, fueled by the Trump administration’s pro-crypto policies and demand for a haven from the volatile US dollar. However, the currency is still down about a third from its peak as global investors become more cautious.

Patrick Gruhn, CEO of cryptocurrency trading platform Perpetuals, said the increase in mining activity in China is an important signal for the market. He said that while the ban has not changed, the resurgence of mining activities in China shows that Bitcoin is a decentralized asset that is difficult for governments to fully control.

In addition to higher Bitcoin prices, excess electricity and processing capacity following a period of overinvestment in data centers by some local governments has prompted miners to return, a mining equipment manufacturer source said.

Data from CryptoQuant shows that China currently operates about 15-20% of the global Bitcoin mining capacity. Liu Honglin, founder of law firm Man Kun, said it would be difficult to eliminate a highly profitable industry. He predicted that policies would likely be gradually loosened over time.

Meanwhile, new moves such as Hong Kong's stablecoin law and Beijing's consideration of using a yuan-backed stablecoin to boost the currency's global status are also seen as signs of China's more flexible stance on the digital asset sector.

Source: https://baotintuc.vn/thi-truong-tien-te/hoat-dong-dao-bitcoin-bung-no-tro-lai-tai-trung-quoc-20251125101637621.htm