Tuesday, June 24, 2025
  • About us
  • Economic Calendar
  • Price Predictions
  • Coins Alerts
  • Crypto Portfolio Tracker
  • Exclusively from Our Partners
Cryptheory
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
        • Binance Futures Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions
No Result
View All Result
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
        • Binance Futures Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions
No Result
View All Result
Cryptheory
No Result
View All Result

Why China dominates the mining industry despite the BTC ban

by Margharet Tess
September 24, 2021
in Cryptheory News
Reading Time: 4 mins read

 

China has always been an important market for BTC and other cryptocurrencies, but that has now changed – what is the current situation?

BTC and Co. have been an integral part of China for a long time. The Chinese crypto community has long been one of the most active in the world. Despite the increasingly restrictive measures taken by the Chinese government (CPC), China has the second largest market for cryptocurrencies after the US.

Data from the crypto analytics company Chainalysis show that between January and July 2021 alone, cryptocurrencies worth over 150 billion US dollars flowed into China.

In addition, China has also dominated the BTC mining industry in particular in the past. At times, the Middle Kingdom was estimated to be responsible for around 65 percent of the global BTC hash rate.

However, China is increasingly losing its status as a crypto superpower. And that’s because the Chinese government is cracking down on cryptocurrency trading and the mining industry.

In May 2021, government officials announced their intention to crack down on mining and trading in cryptocurrencies. Shortly thereafter, the global hash rate fell as many Chinese miners had to cease operations. Poolin, AntPool, F2Pool, BTC.top and ViaBTC are all mining pools that were mainly based in China and caused a sharp drop in the BTC hash rate as a result of the BTC mining ban in May 2021.

The graphic of Chainalysis Illustrates how the hash rate of all Chinese mining pools decreased after the mining ban. At the same time, it can be seen that the Czech mining pool SlushPool did not experience a drop in hash rate over the same period.

Why Chinese Companies Still Dominate Mining

After the ban, many Chinese miners moved to other countries. The USA, South America, Iran and Kazakhstan were particularly popular among miners. As a result, a massive redistribution of the hash rate took place on a global level and one can assume that sooner or later the last BTC miner will also leave China.

But if you look at the current hash rate distribution one recognizes that Chinese mining pools are now back at the top.

Why China dominates the mining industry despite the BTC ban
source: BTC.com

So it seems that a vast majority of Chinese miners have managed to transfer their mining equipment to other countries. The three largest BTC miners are again Chinese companies that have set up their farms in other countries.

In addition, China continues to dominate the mining equipment market. Much of the mining hardware is manufactured by the Chinese company Bitmain. Bitmain is also the owner of AntPool, currently the second largest mining pool in the world. In addition, an analysis by Chainalysis shows how important Bitmain still is to the mining industry.

The graph shows Bitmain’s on-chain transactions with some of the largest mining pools. Green arrows stand for newly mined BTC that are being used by mining pools. Red lines represent mining pools that send BTC directly to Bitmain to buy mining hardware. In addition to Bitmain, you can also see a wallet for a company called MatrixPort. According to Chainalysis, MatrixPort is a cryptocurrency payment service provider that has been processing payments flowing to Bitmain since 2019. These cash flows are shown in the graphic with orange lines. They show that the same mining pools are still buying the bulk of their mining equipment from Bitmain – a sign that Chinese companies are still dominating the mining sector.

summary

The Chinese government has expelled almost all miners from China and massively restricted the trade in cryptocurrencies. Meanwhile, the Chinese government is also cracking down on crypto trading. Nevertheless, Chinese mining pools dominate by far the largest part of the BTC hash rate and at the same time most miners are still dependent on Chinese mining hardware.

How could things go on in China?

The development dynamics in China seem puzzling at first glance. On the one hand, the Middle Kingdom promotes blockchain innovation in its own country. On the other hand, the Chinese government is cracking down on the crypto space with bans and trading restrictions.

Many indications suggest that the CPC have recognized the power of cryptocurrencies and blockchain technology. The CPC might now want to ensure that they control the use of this power as much as possible and therefore continue to restrict the crypto market. Bobby Lee, a crypto veteran, said in a July interview Bloomberg that he could even imagine that sooner or later China will completely ban trading in cryptocurrencies. This prediction has now been confirmed by the latest news from the Middle Kingdom. A few hours ago we reported that the Chinese central bank had declared all crypto transactions to be illegal.

That, in turn, could be because the Chinese government wants to push its own digital currency. Why the Chinese government has gone to their mining companies, but not directly, could be loud Chainalysis because China wants to continue to undermine the US sanctions regime. This fact could also explain why so many mining companies have partnerships with Iranian companies received says Chainalysis.

Top alternative exchanges for Binance without KYC verification

  • Author
  • Recent Posts
Margharet Tess
Margharet Tess
Editor, Developer at Cryptheory Labs
I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com
Margharet Tess
Latest posts by Margharet Tess (see all)
  • Bitcoin’s Not Dead, It’s Just Loading: On-Chain Data Says Sit Down and HODL - June 24, 2025
  • To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro - June 23, 2025
  • Bitcoin at $104K: Spoofers, Liquidations & Degens – Welcome to the Danger Zone - June 20, 2025
Tags: btc miningChinamining pool
Previous Post

RobinHood: from October there will be a new crypto wallet feature

Next Post

The legalization of cryptocurrencies in Ukraine and the comparison to El Salvador is plain nonsense, why should we care?

Related Posts

To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro
Uncategorized

To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro

June 23, 2025
2025 Déjà Vu? Why This Bitcoin Dump Might Just Be Your 2020 Moment All Over Again
Cryptheory News

2025 Déjà Vu? Why This Bitcoin Dump Might Just Be Your 2020 Moment All Over Again

June 23, 2025
Altseason Is Coming: Time to Saddle Up, Degens
Cryptheory News

Altseason Is Coming: Time to Saddle Up, Degens

June 20, 2025
Bitcoin at $104K: Spoofers, Liquidations & Degens – Welcome to the Danger Zone
Cryptheory News

Bitcoin at $104K: Spoofers, Liquidations & Degens – Welcome to the Danger Zone

June 20, 2025
Stablecoin Scrutiny: From Tether’s Launch to MiCA’s Dawn, Regulators Are Watching
Cryptheory News

Stablecoin Scrutiny: From Tether’s Launch to MiCA’s Dawn, Regulators Are Watching

June 12, 2025
June 15th: The Altcoin Apocalypse or Your Ticket to a Lambo? Let's F***ing See.
Cryptheory News

June 15th: The Altcoin Apocalypse or Your Ticket to a Lambo? Let’s F***ing See.

June 11, 2025
SOL's Big F***ing Breakout: Why Solana's About to Send You to the Moon
Cryptheory News

SOL’s Big F***ing Breakout: Why Solana’s About to Send You to the Moon

June 10, 2025
Crypto Trading Tips for June 5, 2025: Navigating the Binance Spot Market
Cryptheory News

Crypto Trading Tips for June 5, 2025: Navigating the Binance Spot Market

June 5, 2025
Spot Market Flexes and Derivatives Cry in the Corner: How Does It Look On-Chain?
Cryptheory News

Spot Market Flexes and Derivatives Cry in the Corner: How Does It Look On-Chain?

May 15, 2025
Please login to join discussion
Track all markets on TradingView
Score: 0
Game Over

Popular

Stablecoin Scrutiny: From Tether’s Launch to MiCA’s Dawn, Regulators Are Watching

Stablecoin Scrutiny: From Tether’s Launch to MiCA’s Dawn, Regulators Are Watching

June 12, 2025
Crypto Trading Tips for June 5, 2025: Navigating the Binance Spot Market

Crypto Trading Tips for June 5, 2025: Navigating the Binance Spot Market

June 5, 2025
The Centralized Trap: Is Web3 Quietly Turning Back Into Web2?

The Centralized Trap: Is Web3 Quietly Turning Back Into Web2?

June 24, 2025
Solana On-Chain Frenzy: New Addresses, Spikes, and Degens Running Wild

Solana On-Chain Frenzy: New Addresses, Spikes, and Degens Running Wild

June 12, 2025
The Hottest Female Characters in PC Games: A Deep Dive into Digital Desirability

The Hottest Female Characters in PC Games: A Deep Dive into Digital Desirability

June 5, 2025
Analysis & Trading Tips June 10, 2025: Dogecoin Is Barking Again

Analysis & Trading Tips June 10, 2025: Dogecoin Is Barking Again

June 10, 2025
To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro

To Everyone Selling Their Crypto: Take a Breath, Quit Panicking, and Read This Like a Pro

June 23, 2025
2025 Déjà Vu? Why This Bitcoin Dump Might Just Be Your 2020 Moment All Over Again

2025 Déjà Vu? Why This Bitcoin Dump Might Just Be Your 2020 Moment All Over Again

June 23, 2025
Who Really Makes Bank on Memecoins – And Why It Ain't You, You Beautiful Degenerate

Who Really Makes Bank on Memecoins – And Why It Ain’t You, You Beautiful Degenerate

June 4, 2025
How to Trade Meme Coins in 2025: A No-BS Guide for Degens and Smart Investors Alike

How to Trade Meme Coins in 2025: A No-BS Guide for Degens and Smart Investors Alike

June 9, 2025

⭐ What Type of Crypto Investor Are You? (v2)

1. How do you DYOR (Do Your Own Research)?

2. Your first reaction to a 10x pump?

3. What’s your opinion on memecoins?

4. Where do you stake your crypto?

5. What’s your exit strategy?

6. How do you pick your next investment?

7. Favorite kind of airdrop?

8. What’s your approach to NFTs?

9. How do you store your crypto?

10. What's your long-term crypto goal?

Crypto News

Bitcoin

Ethereum

Altcoins

Cryptocurrency

Platforms for Copy Trading

Platforms for Grid Trading

Glossary of trading and crypto terms

Crypto Portfolio Tracker

 

Cryptheory Labs Projects

Guest Post for Free

On our website, you can share your opinions and insights. This feature is reserved for non-promotional articles. We are already working on a system for donations and rewarding every author.

This website is here for those of you who want to be at the forefront of innovation and new technologies like Bitcoin. But first, we need to tackle the challenges and survive in the unforgiving world of crypto assets. THIS IS CRYPTHEORY!

Follow Us

  • Terms Of Use
  • Privacy Policy
  • About us
  • Contact us

© 2024 Cryptheory - F**k the forex, we want gains!

Shiba Inu loading
No Result
View All Result
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions

© 2024 Cryptheory - F**k the forex, we want gains!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.