Chinese miners control more than half of the Bitcoin mining market
Date: 2024-07-04 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The founder of the analytics company CryptoQuant, Ki Young Joo, said that mining pools from China currently control at least 54% of the global bitcoin mining market. Despite the official ban, Chinese miners continue to actively participate in the mining of cryptocurrencies, which raises significant questions among the global cryptocurrency community.
Mining in China: official bans and the real situation
Although mining of cryptocurrencies, including Bitcoin, has been officially banned in China since the fall of 2021, this has not stopped the activities of many mining pools. Chinese authorities have announced that there will be fines and other sanctions for violating the law. Nevertheless, large mining companies continue to operate, although they try not to attract undue attention to themselves.
Experts have negatively assessed the ban on mining in China. The ban caused a massive exodus of mining companies from the country, allowing other regions, especially the United States, to strengthen their position in the market. Today, according to Ki Young Ju, about 40% of global Bitcoin mining occurs in the United States, making it the second largest cryptocurrency mining center after China.
Impact on the global cryptocurrency market
Control of more than half of the global bitcoin mining market by Chinese miners has a significant impact on the cryptocurrency market. The high concentration of mining capacity in one country creates risks for the decentralization of the Bitcoin network. This could lead to potential manipulation and vulnerabilities, especially given the complex relationship between the cryptocurrency industry and the Chinese government.
The situation with Bitcoin mining in China remains complex and controversial. Despite official bans, Chinese miners continue to control a significant part of the global market. At the same time, other regions, such as the United States, are actively strengthening their positions, which creates a dynamic and competitive environment in the global cryptocurrency industry.
