According to research, even though China has made mining and trading illegal, it continues to be a Bitcoin mining hot spot. Annual research was conducted by the Cambridge Centre for Alternative Finance (CCAF), which presented a virtual map of global Bitcoin mining. These scientists publish periodic results in The Cambridge Bitcoin Electricity Consumption Index, which gives an insight into the activity of miners in specific countries.

China may have massive underground bitcoin mining operations despite ban last year, Cambridge data shows https://t.co/qorSc9IzHy

— South China Morning Post (@SCMPNews) May 17, 2022

On the virtual map, Mainland China’s average monthly hashrate share is 21.11%, which is second only to the U.S. in the world. Sichuan’s hashrate is 42.59% and Xinjiang 32.25%. It’s worth noting that these two cities are leaders among the top locations, even outrunning the state of Georgia (U.S.), which has a hashrate of 30.76%.

Swift Recovery Even Though Illicit Businesses

From September 2021 to January 2022, China’s Bitcoin mining efforts rounded out to approximately 20% of the world’s overall hashrate. Last May, China’s ruling against Bitcoin mining was issued. The hashrate then rapidly fell to below zero. It seems that this setback was temporary as China appears to be regaining its position as the key player in mining.

Up to January 2022, new Bitcoin mining data. Despite the ban, China miners make up 21%. USA increased from 35 > 37%.Malaysian share decreased from 5% > 2.8%. The ranking went from seventh to fifth. Malaysian miners generate RM133million worth of BTC each month. pic.twitter.com/7fn046yiw9

— Adam Mashrique (@sakak_musdom) May 17, 2022

The silent August 2021 wasn’t the rule, it was an exception. Mainland China’s Bitcoin mining hashrate swiftly skyrocketed back up to 22% in September, while the United States led the world at 27.7%.

Chinese Bitcoin miners seem to have managed to circumvent the crypto mining ban and moved underground. They are now actively using VPNs to continue crypto mining.

One business insiders, who wished to remain anonymous and will henceforth be referred to as “Bob”, said: “Chinese miners use a VPN and try not to use too much energy from a single spot, so the electrical company cannot detect any strange energy consumption.” It looks as though the strategy worked out just fine, and now these miners rely on VPNs and other proxy services to keep operations running.

Bitcoin is recognized as a valuable property

Just a recently, news surfaced that one of China’s High Courts acknowledged the economic value of 1 BTC. It was a case involving a loan that was paid as 1 BTC. The plaintiff was awarded a judgment and must be compensated according to Bitcoin’s market value.

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