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- Despite China’s Bitcoin ban, it still controls 55% of the mining hashrate, raising questions about the ban’s enforcement.
- The U.S. is gradually gaining ground in Bitcoin mining, while China may reconsider its ban by late 2024.
Despite China’s 2021 ban on cryptocurrency mining and trading, Chinese Bitcoin miners continue to dominate the global network. This mirrors a previous event when CNF reported earlier in June that Bitcoin mining thrives in China despite the misunderstood ban.
Furthermore, according to the CEO of CryptoQuant, Ki Young Ju, who shared via a recent tweet on the X platform, Chinese mining pools control over 55% of the Bitcoin mining network. In contrast, U.S.-based mining pools manage around 40%, primarily serving institutional miners, while Chinese pools cater to smaller, more localized miners in Asia.
#Bitcoin hashrate dominance is shifting to U.S. mining companies.
Chinese mining pools operate 55% of the network, while U.S. pools manage 40%.
U.S. pools primarily cater to institutional miners in America, while Chinese pools support relatively smaller miners in Asia. pic.twitter.com/kepopLWBSD
— Ki Young Ju (@ki_young_ju) September 23, 2024
U.S. Gaining Ground in Bitcoin Mining: Will China Unban BTC?
However, while China still holds the lion’s share, the balance of power in Bitcoin mining is gradually shifting toward the U.S. Ki Young Ju shared this insight in a Sept. 23 post, noting that U.S. mining firms are making headway. This shift underscores growing institutional interest in Bitcoin mining within the U.S. market, driven by major firms entering the space.
In line with another CNF update during the Bitcoin Asia Conference in Hong Kong, CNF highlights the surging interest in China amid the crypto ban. China’s dominance in the Bitcoin mining sector comes as the country prepares for stricter regulations on cryptocurrency transactions.
Amendments to its Anti-Money Laundering (AML) laws are slated for 2025, with plans to extend coverage to crypto activities. This shift is in response to increasing concerns about money laundering and illicit financial activities facilitated through digital currencies.
Additionally, despite the 2021 ban, some mainland users have found ways to engage with the crypto market, prompting regulators to tighten oversight further. Rumors have also surfaced that China might reverse its ban on Bitcoin by late 2024, according to reports shared by Galaxy Digital CEO Mike Novogratz.
Bitcoin Miners Face Revenue Pressure
Globally, Bitcoin miners experienced a challenging month in August 2024, with revenue dropping to $827.56 million, marking the lowest monthly earnings in a year. This represents a 10.5% decline from July but a slight increase compared to August 2023. Bitcoin prices hovered around $25,000 throughout the month, contributing to reduced profitability.
According to CoinMarketCap data, Bitcoin (BTC) is trading at $63,441, with a 0.05% decrease in the past day and an 8.34% increase in the past week. However, the total number of Bitcoins mined also saw a decline, from 14,725 BTC in July to 13,843 BTC in August.
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