Bitcoin mining in China rebounds, defying 2021 ban

[Bushdark]

China has a very cheap electricity compared to any country of the world and it is very tempting to mine Bitcoin in China since it will be very profitable compared to other countries where electricity can be very expensive. We have seen news about China accusing the US government of stealing their Bitcoin worth billions of dollars by an exchange and I am thinking this could have been the reason why China don't want to lift the ban on Bitcoin and other cryptocurrency. Maybe they think that the US has huge influence on Bitcoin and it will be better for them to invest in Gold which is a solid precious metal.

[Alphakilo]

I think this Chinese rebound after some years of banning it, is because they have observed how Bitcoin functions and also because Bitcoin's protocol obeys the path of least resistance with great profit while offering great value and balance to a countries macroeconomic gains. Energy is quite cheap there unlike most other countries who would think twice about the energy consumption rate before investing in operations of mining farms.

Although some still gained more experience while investing in BTC still under the ban within those periods, the fact also that U.S and some countries are now leaning towards reserve banks and more regulations to favor the use of BTC is enough reason for them to legalize it, even though still regulated, it confirms their trust for the decentralized nature and system of digital currencies.

[SilverCryptoBullet]

China has a very cheap electricity compared to any country of the world and it is very tempting to mine Bitcoin in China since it will be very profitable compared to other countries where electricity can be very expensive.

The cheaper electricity cost in China has big impacts on many things there. They have many huge dams and hydroelectric facilities which damage their forests, rivers, environment and ecosystem while there are dramatical impacts on their citizens every rain and flood season. I don't consider it as a big advantage for China in competition with other nations in general and in particular with Bitcoin mining. You can see many reports on how floods in the past damaged Bitcoin mining facilities.

I think this Chinese rebound after some years of banning it, is because they have observed how Bitcoin functions and also because Bitcoin's protocol obeys the path of least resistance with great profit while offering great value and balance to a countries macroeconomic gains. Energy is quite cheap there unlike most other countries who would think twice about the energy consumption rate before investing in operations of mining farms.

They are smart, not stupid and they are very flexible and adaptive with things can bring money to their nation. From government to Chinese, they are all good in adaptation with most trendy industries and make monetary benefit while as a classic national problem, they don't care about sustainable growth so their economic growth has many terrible adverse effects on environment, ecosystem and local people in long term.

[Aanuoluwatofunmi]

I got to discover something about China, that they always want to have a system from within their circles which the can control over as individual or government, that is why they have been making it hard on bitcoin being a decentralized digital currency in the past, if we go back to their frameworks and policy there, that is why sometimes you can still discover about some crypto activities there, even though they are done closely within some certain locations privately.

[Die_empty]

Since mining is still officially banned in China, it is safe to say that those miners are doing it secretly. But going by the kind of country China is, i believe it is 'safer' to say that the government is simply choosing to look away and have relaxed the law without having to make any official statement.

I stopped caring about China and all its incessant news about bans and other whatnots. But i can't but notice that there are so many people in our community who care so much about China's crypto stance. I recommend they turn focus away from China, because it would hardly ever be completely positive as long as BTC is involved.

You got the point. Mining activities cannot be going on in China in this large scale without the approval of the Communist government. This is not the first time the news of increased Bitcoin mining operations in China has been reported in popular news outlets. The government's failure to crack down on these illegal miners could be seen as a subtle approval.

China is the world's second-largest economy. The US is getting all the attention because China became hostile. We cannot overlook China if it wants to regain its position as a major player in the crypto space, as it has a significant level of influence. Just as the US,  Chinese economic policies are also influential.

[moneystery]

If it's just underground mining developing, it doesn't seem like good news, because no matter how underground miners try, they have the risk that their illegal activities will be endangered by the government and they could be threatened with criminal activity because they continue mining in the midst of the ban.
But I don't really care about that, whether mining develops or not there is not important to me, what is most important to me is how the price of Bitcoin will be in the future.

[pooya87]

Good news or bad news?

The only thing we should always care about is decentralization so we should always measure everything with that "gauge". Does mining growing in China help decentralization? I say yes. We have seen the hashrate grow elsewhere and we've seen how authoritarian different governments are. For example in the US which has one of the largest hashrates, the government orders miners to sensor bitcoin transactions (ie to carry out an attack on one of Bitcoin's main principles). We haven't seen the same thing in China. When hashrate grows in China it is a good thing to balance that attack from US.

As long as no jurisdiction gains a large enough hashrate to become a threat, these types of news are a positive thing.

[tbct_mt2]

The only thing we should always care about is decentralization so we should always measure everything with that "gauge". Does mining growing in China help decentralization? I say yes. We have seen the hashrate grow elsewhere and we've seen how authoritarian different governments are. For example in the US which has one of the largest hashrates, the government orders miners to sensor bitcoin transactions (ie to carry out an attack on one of Bitcoin's main principles). We haven't seen the same thing in China. When hashrate grows in China it is a good thing to balance that attack from US.

As long as no jurisdiction gains a large enough hashrate to become a threat, these types of news are a positive thing.

China is only one of many nations in the world and with existing fact that Bitcoin network is very decentralized, the recent comeback of China in Bitcoin mining can not damage Bitcoin decentralization. Especially since the China mining crackdown years ago, there has been mining migration to other countries which increase Bitcoin network decentralization.

With very volatile and uncertain policies in China, not all Bitcoin mining pools are ready to take risk for migrating their mining farms back to China. So China Bitcoin mining will not be as big as it was in the past.

[rat03gopoh]

I already suspected that the mining ban wouldn't be perfect in practice. Those migrating out of China were only those who had previously operated in hazardous locations.

In reality, China is a vast landmass, especially settlements in valleys and on the border where I don't think supervision is particularly strict. However, I've heard that the electricity supply in China is nearly 100% equitable, including in hard-to-access areas, although I don't know if special tariffs apply. If mining activity surges again after the ban, it's likely that miners will operate in those areas.

[Aanuoluwatofunmi]

If I could read OP quote well, it states that quietly, which tells more of their intentions to restore the mining process back, but being done hiddenly to avoid government sanction, I don't think anything has changed yet about their government regulations against any mining activities, however some are still found there in China mining secretly at their own risk.

[shield132]

Some had to move to Hong Kong which is a less strictly place for crypto mining, but many china Bitcoin miners are already at huge losses after their government destroyed the ASICS they seized, as I heard from my source, many of them never get back what they have lost till today.

Lots of Chinese people moved to my country, in Batumi and even bought an apartment to live. There was a scandal about that in my country because everything happened without following laws and the government was involved in it but as always, after a few weeks, people forget it and the government walks away from it.

China is full of bad citizens who runs mining operation underground, this was the problem and it was so large that outage do happens, if the government never get so pissed on them they will bring down the country's Grid systems, this was sadly how big it was.

When it comes to punishments, China is one of the strictest country in the world, so I wonder how people risk running things underground.

I think this just proves to us that miners will always find a way as long as the numbers make sense.

There is always a country that's looking for investments and use advantage of similar situations and my country is a perfect example. When mining got banned in China, lots of Chinese flew to my country and with the help of the government, they continued their business. Money buys everything.

[melinoe]

This story is getting pretty old already, China banning and then unbanning mining. Now we just have to see when the next ban will happen, which will cause FUD, and as a consequence the weak hands will trigger a new bitcoin dump, creating another buying opportunity for those who truly understand what bitcoin is about.

At some they would need to stop and stand firmly on their view of BTC and crypto, but as for now, they are still sitting on a fence

[Smartprofit]

I think it's because the leaders of the Chinese Communist Party are pragmatists. They're willing to use any means necessary to achieve their desired strategic outcome. One Chinese leader (a communist) once said, "We're willing to use even a capitalist cat🐱, as long as it's good at catching mice!" This pragmatic approach is typical of all Chinese leaders.

I think Chinese leaders have long recognized that Bitcoin has already become a strategic global financial asset. I remember reading an interview with an American congressman who said that American miners needed to develop very quickly to avoid losing out to competition from state-backed Chinese miners. I was very surprised at the time, because I knew that Bitcoin mining and use were strictly prohibited in China... However, this American congressman was undoubtedly much more informed than I was. And he most likely already knew that the leaders of the Chinese Communist Party have long encouraged Bitcoin mining in China (despite the formal ban).  It's just that Chinese mining is developing secretly.🥷 We generally have a very poor understanding of the economic processes taking place in China. It's a very closed country.

P.S.

In my opinion, the more countries perceive Bitcoin as an important strategic asset, the better (and China is no exception).

[Numeral]

If the Chinese government really weighed all the pros and cons when deciding to resume mining activities, then the effect will be more positive than negative. They were concerned that there might not be enough energy resources for everyone if many people were mining, because China is a very densely populated country with a huge population that requires a large total amount of electricity. In terms of the country's financial stability, Xi apparently reached an agreement with Trump and they jointly came to a compromise, which means that the risks to China's financial system have decreased.

[EarnOnVictor]

Good news or bad news?

Or the Chinese government might relax again and allow those miners or even themselves to mine Bitcoin as it seems that there have been a silent race with US in terms of the biggest Bitcoin holders as we all know that Trump want's Bitcoin as a strategic reserves.

Of course, this is a good news for both China and Bitcoin community. What is clear is that China is too sophisticated as a country for the government not to know that  Bitcoin mining is going on in their domain. But you know what? No country wants to take the back seat in the world of crypto, and I am sure the Chinese government only turns a blind eye, as they envy other countries.

This is their way of relaxing the ban, nothing more.

[tabas]

To be honest, with or without the ban. I think that there are still miners around there that have been doing it in some cities there that they won't get caught. They're always push and pull with their crypto regulations so, it won't be a big thing anymore whether they will announce another series of ban or unban. That's China for us guys and knowing that the biggest manufacturer of miners are related to the country, they understand more and better than us. But the government need to stop doing and push and pull in crypto regulations and stick only to what they are up to for better progress.

[Joy- maker]

I'm glad to hear that the Chinese government has finally regained back their senses, and start seeing things the right way. How could they even think that they can banned Bitcoin completely in China, Bitcoin is something that can't be banned completely in any country, many governments had tried it in the past years and they failed, Bitcoin that is a new innovation, a coin full of potentials and a big Edge against inflation, one of the world most valued asset. Chinese government could have allowed themselves to be left behind, they did they finally realized that they made a very big mistake by banning Bitcoin.
And I'm pretty sure that, there where some Chinese who were secretly mining Bitcoin even before this day that the Chinese government has finally realize themselves and allow the mining activities to continue in their country.

[AmoreJaz]

To be honest, with or without the ban. I think that there are still miners around there that have been doing it in some cities there that they won't get caught. They're always push and pull with their crypto regulations so, it won't be a big thing anymore whether they will announce another series of ban or unban. That's China for us guys and knowing that the biggest manufacturer of miners are related to the country, they understand more and better than us. But the government need to stop doing and push and pull in crypto regulations and stick only to what they are up to for better progress.

Do remember when China banned btc, still, there are miners who did continue to mine based on the crypto mining map. And now that we are seeing that they are becoming lenient towards crypto, I believe, there are so many miners now again in their country. They have seen that no matter what, even if a big economy like China did make a move against bitcoin, btc market is still making its own progress without their participation.
With the consideration that btc continues its progress despite of the ban, it means, this market can survive even without their presence. And now their government is realizing that btc continues to become popular even without big economy like them behind it. And so they are now getting back in the crypto market by accepting again the btc in their financial market.

[tabas]

To be honest, with or without the ban. I think that there are still miners around there that have been doing it in some cities there that they won't get caught. They're always push and pull with their crypto regulations so, it won't be a big thing anymore whether they will announce another series of ban or unban. That's China for us guys and knowing that the biggest manufacturer of miners are related to the country, they understand more and better than us. But the government need to stop doing and push and pull in crypto regulations and stick only to what they are up to for better progress.

Do remember when China banned btc, still, there are miners who did continue to mine based on the crypto mining map. And now that we are seeing that they are becoming lenient towards crypto, I believe, there are so many miners now again in their country. They have seen that no matter what, even if a big economy like China did make a move against bitcoin, btc market is still making its own progress without their participation.

I remember that as well, for as long as they're not get caught by their government, they'd do that. Especially those miners who are from the provinces which don't have much monitoring of what the people do. They don't mind mining it as long as there's no red flag that are seen from those miners. I believe that if there's a will, there's always a way for these miners because it's all about money that they're earning. And knowing the thoughts and earning style of chinese people, they're going to do it for as long as they're not stepping into other people even if there's a restriction placed on them. But it seems loosened now which makes them most likely free to do it again.

[Antona]

It's neutral news honestly miners go where the power is cheap and the heat-can be managed china's ban was never fully enforceable in remote regions, it shows Bitcoin mining's resilience not a policy shift, the gov likely tolerates it for economic activity not endorsement. Don't expect an official green light soon