Despite an official ban on cryptocurrency mining in China, new data shows that the country remains a major powerhouse on the Bitcoin (BTC) network. According to a new report from Luxor, China is now the third-largest Bitcoin mining hub in the world, behind the United States and Russia, with a 14.05% share of the network’s total processing power.
The figures show that Chinese mining activity has never completely stopped and mining continues underground. Industry sources say much of this activity is concentrated in the Xinjiang region, where cheap energy and widespread access to electricity infrastructure make it an ideal location for mining farms.
While the Chinese government has banned cryptocurrency mining since 2021 and the country's central bank has also deemed related transactions illegal, the persistence of clandestine mining shows that it has been difficult for Beijing to fully rein in the industry.
At the same time,
the price of Bitcoin is trading in the $111,000 range and the network hash rate has increased significantly to above 1.137 exahashes per second, a sign of miners' renewed confidence in Bitcoin's long-term stability and profitability.
