Bitcoin miners in China still hold a large share of the global Bitcoin network despite the country's comprehensive crypto ban.

China controls Bitcoin mining hashrate

China still holds a large position in the Bitcoin mining sector, despite the ban on all crypto-related activities that came into effect in 2021. Ki Young Ju, founder and CEO of CryptoQuant, said that China now controls 55% of the global hashrate, followed by the US with a 40% share.

Hashrate (the difficulty of mining the Bitcoin network) is an important metric that represents the computing power that miners use to validate Bitcoin transactions and secure the network.

Despite China's ban on Bitcoin mining, many miners continue to operate, mostly in small groups. In contrast, miners in the US are mostly large organizations, using advanced technology and resources to maintain a competitive advantage.

It can be seen that although China is legally restricted, small miners continue to operate, but they are facing strong competitive challenges from other countries such as the US.

China's crypto stance

China is famous for its extremely harsh crypto stance, one of the strictest policies in the world. Since 2017, China has begun to ban fundraising through crypto issuance (Initial Coin Offerings - ICO) and closed domestic exchanges. By 2021, the country officially issued a ban on cryptocurrency mining and trading.

The goal of the crackdown is to minimize the financial and environmental risks associated with digital currencies. However, the decentralized nature of Bitcoin has helped miners overcome government barriers. As a result, China still has a large influence on the Bitcoin network.

In addition, underground cryptocurrency trading markets are still thriving in China through VPNs and social media platforms. According to the latest estimates, the total annual crypto trading volume in China is around $86 billion.

Not stopping there, China is also developing a digital yuan, e-CNY, controlled by the People's Bank of China (PBoC). This currency is part of China's strategy to maintain financial control and limit the influence of decentralized cryptocurrencies like Bitcoin.

Industry leaders, such as TRON founder Justin Sun, have called for China to reconsider its digital asset policy. Sun argues that creating a counterweight between China and the United States on cryptocurrency policy could spur important advances for the industry. This comes as the US positions itself as a global crypto leader under former President Donald Trump’s pro-Bitcoin platform.

There are also signs that China is gradually easing its strict stance, especially as it shows growing interest in blockchain technology and the possibility of changing its regulatory framework. Recent reports suggest that China may consider revising crypto regulations, especially given developments in Hong Kong, which is transforming itself into a new crypto hub with Beijing’s tacit backing.

Bitcoin Mining Revenues Plunge

Last month, Bitcoin miners around the world were under pressure as their revenues plummeted, marking their lowest monthly revenue in a year. Specifically, total revenue reached $827.56 million, down more than 10.5% from July ($927.35 million), but still up 5% year-on-year, according to data from Bitbo.

It was also the worst month since September 2023, when miners earned just $727.79 million. At that time, Bitcoin was hovering around $25,000. The number of Bitcoins mined also dropped slightly from 14,725 BTC to 13,843 BTC in August.