China Never Truly Banned Bitcoin Mining, New Report Reveals

• Daniel Batten, an environmental analyst for Bitcoin, recently made a striking revelation concerning BTC mining in China.
• Batten asserts that contrary to widespread reports, BTC mining was never officially banned in China; it only faced a temporary suspension.
• This finding challenges the dominant narrative and underlines the growing revival of Bitcoin mining activities within the country.

Discover why Bitcoin mining was never truly banned in China and how the industry is adapting.

Bitcoin Mining Was Never Truly Banned in China

Daniel Batten’s comprehensive report reveals that the hashrate in China currently constitutes approximately 15% of the global total, challenging widely-held perceptions that emerged in May 2021. Major news sources at that time had reported a severe crackdown on cryptocurrency activities by the Chinese government.

Temporary Suspension Misinterpreted as a Ban

According to Batten, the drastic 51.1% fall in network hashrate—from 179.2 EH/s to 87.7 EH/s—was wrongly perceived as a full-fledged ban. He compared it to a school suspension rather than an expulsion, implying that operations were temporarily halted but never completely terminated.

Recovery and Continued Operations

Reports soon after the supposed “ban” showed that several mining operations continued uninterrupted. By December 2021, Cambridge data demonstrated that China’s mining activities had bounced back to constitute 19.1% of the global hashrate, highlighting a misinterpretation of the actual scenario. Investigations even revealed that numerous miners persisted in their operations despite the claimed restrictions.

The Evolving Landscape of Bitcoin Mining in China

Batten elaborated on China’s adaptive strategy toward Bitcoin mining. The country has increasingly employed waste renewable energy and recycled heat, creating a more distributed and environmentally-friendly mining model. This shift is especially notable in provinces like Inner Mongolia, which aim to monetize excess renewable power. Batten emphasized that smaller, utility-focused miners are still welcomed, debunking the myth of a complete shutdown.

Environmental and Economic Considerations

Despite no longer supporting off-grid coal-based mining, China’s initiatives align with its goal of achieving carbon neutrality by 2060. Batten highlighted that much of the current mining is conducted using hydroelectric power. Local governments support these activities as they bring economic benefits without straining energy resources, leading to a nuanced understanding of China’s regulatory stance.

Conclusion

Daniel Batten’s findings rectify long-standing misconceptions regarding China’s Bitcoin mining sector. The suspension was temporary and selective, focusing on sustainability and economic rationale rather than a blanket ban. This nuanced perspective not only reshapes the global understanding but also emphasizes the importance of accurate reporting. As China continues to adapt and refine its approach to cryptocurrency, it’s crucial for media outlets to differentiate between sensationalism and facts. This evolving landscape underscores the need for ongoing, in-depth analyses to fully grasp the dynamics of global Bitcoin mining.