The Chinese government’s mandate to ban crypto operations seems to have been ineffective. This is coming after a recent report stated that China was part of the world’s first three largest Bitcoin mining centers.
Are BTC Miners Secretly Mining In China?
According to the latest news from CBEC (Cambridge Bitcoin Electricity Consumption Index), China has surpassed Japan to become the world’s second-largest provider of hash rates for Bitcoin in January. This comes several months after the Chinese government issued a ban on cryptocurrency operations within the country.
The data stated that miners of Bitcoin in China were responsible for 21% of the global Bitcoin mining distribution hash rate for January. This made China the second-largest contributor after the US, which produced 37.8% in January.
China was formerly the greatest Bitcoin mining nation worldwide, and the country’s Bitcoin hash rate accounted for over 75% of the total in 2019. When crypto-mining centers finally stopped, it crashed to 0% in August.
Despite the prohibition on crypto that was implemented in September, the hash rate skyrocketed to 22.3% in that same month.According to the leader of the CBECI project, Alexander Neumueller, who spoke with Cointelegraph, the newly gathered evidence is sufficient to conclude that BTC mining is still active in China.
Neumueller said, “Our empirical data confirms that mining of BTC is still very active in China.” Although mining in China has fallen significantly from its previous peaks, the nation still hosts around 20% of the global hash rate.
Russia No Longer Part Of The Largest Crypto Miners Worldwide
The recent CBECI report also indicates that Kazakhstan’s hash rate has decreased. The percentage of the BTC hash rate that Kazakhstan contributed fell from 18% in August last year to 13.2% in January.
Also, miners are currently mining up to 9% of the total global Bitcoin hash rate in areas not clearly identified. The next two biggest centers for mining are located in Russia and Canada, each of which accounts for 4.7% and 6.5 percent, respectively.
According to the statistics, the three states with the highest hash rates are Georgia, Kentucky, and Texas. Each of these states accounts for 32%, 10.9%, and 11.2% of the total, respectively. The total hash rate produced in these three states accounts for over 50% of the total hash rate produced in the US.
According to the statistics, significant mining activity may also be found in New York, North Carolina, Washington, and California. The CBECI bases its calculations on data collected from four different mining pools: Poolin, BTC.com, Foundry, and ViaBTC.