When China rhymes with hypocrisy – By announcing a cryptocurrency mining ban on its soil, China shot himself in the foot. The devices of Chinese miners have indeed been exiled to less authoritarian countries. But despite this official (facade?) ban, the mining activities of Bitcoin (BTC) have indeed taken back.
The total cessation of BTC mining in China will not last long
Last year, towards the end of May-beginning of June 2021, the China seemed to want get rid of bitcoin mining for good and all consensus-based cryptocurrencies by proof of work (PoW).
And indeed, the threatens against crypto-miners seems to have been sufficient, at least for a while. Indeed, in July and August 2021, the China had a priori completely faded away computing power radars (hashrate) present on the BTC blockchain.
The decentralization geography of Bitcoin was also the great winner, since the sudden disappearance of China’s broad dominance in mining spread the BTC hashrate much better across countries around the world. Alone the United States benefited a little morebecoming the new country with the most computing power.
But now, let’s take a look at the graph below, proposed by the Cambridge Bitcoin Electricity Consumption Index (CBECI):
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Hypocrisy in China: Ban Bitcoin, but be the 2nd largest producer in the world
As we can see with amusement, China is listed as producing between 18% and 22% of the global hashing power of Bitcoin, from September 2021 to January 2022.
Even if we are far from its hegemony, at more than 50% of the hashrate, on its own (held until March 2021), this contribution is far from being marginal. In effect, only the United States exceed China, with a growing share ranging from 27.7 to 37.8% of the hashrate, between September 2021 and January 2022.
According to the latest data from the CBECI, China is even quite largely before the 3rd producer, the Kazakhstanwhich would now represent 13.2% of the total. Canada and Russia would be the 4th and 5th BTC producing countries, with contributions around 6 and 7%.
The Chinese government of course very much prefers (only) favor its central bank digital currency (MNBC). But the country’s crypto miners don’t all seem to be so totally fanatics of the digital yuan and seem to prefer bitcoins ringing and stumbling.
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