Chinese Miners Dominate Bitcoin Network Despite Ongoing Ban
Despite a nationwide ban on cryptocurrencies, Chinese miners still hold over 55% of the Bitcoin mining network.
According to Ki Young Ju, CEO of CryptoQuant, U.S. mining pools account for about 40%, mainly servicing institutional clients, while Chinese pools tend to support smaller operations in Asia.
#Bitcoin hashrate dominance is shifting to U.S. mining companies.
Chinese mining pools operate 55% of the network, while U.S. pools manage 40%.
U.S. pools primarily cater to institutional miners in America, while Chinese pools support relatively smaller miners in Asia. pic.twitter.com/kepopLWBSD
— Ki Young Ju (@ki_young_ju) September 23, 2024
This dominance persists even after China’s 2021 crackdown on mining and trading activities. Meanwhile, the country is set to revise its Anti-Money Laundering (AML) regulations by 2025 to include cryptocurrency transactions in response to the challenges posed by technological advancements and the decentralized nature of crypto.
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Experts have suggested that this regulatory shift aims to address increasing money laundering risks, as users in mainland China continue to find ways to access cryptocurrency markets. Additionally, there are indications from industry leaders like Galaxy Digital’s CEO that China might consider lifting its Bitcoin ban by late 2024.
In August, Bitcoin miners faced their worst revenue month in a year, earning approximately $827.56 million, a decline of over 10% from July but a slight increase from the previous year. The volume of mined Bitcoin also dipped, from 14,725 BTC in July to 13,843 BTC in August, as prices hovered around $25,000.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
