An investigation by Bitcoin environmental impact analyst, Daniel Batten, has revealed that China never officially banned Bitcoin mining, contrary to popular belief. Batten’s research indicates that the reported ban was actually a temporary suspension, and mining activities have largely resumed nationwide.
Clarifying the Situation
Batten’s findings show that China’s hashrate, which measures computational power in Bitcoin mining, constitutes approximately 15% of the global total. This contradicts the narrative that emerged in May 2021, when many news outlets reported a comprehensive crackdown on cryptocurrency operations by the Chinese government.
The decline in network hashrate from 179.2 EH/s to 87.7 EH/s, a 51.1% decrease, was mistakenly interpreted as a permanent ban. Batten likened it to a student being suspended, not expelled, to emphasize the temporary nature of the situation.
Reports following the alleged ban highlighted ongoing mining activities in China, indicating that many miners continued operations unfazed. By December 2021, mining had recovered, accounting for 19.1% of the global hashrate, showing a significant rebound.
Batten emphasized that Bitcoin mining practices in China have evolved to include utilizing wasted renewable energy and recycling heat, revealing a more complex approach than previously thought. Provincial governments actively support small-scale mining that contributes to local energy solutions without attempting to evade capital controls.
China’s focus on reducing energy-intensive industries aligns with its carbon neutrality goals by 2060. The misconceptions propagated by Western media outlets about China’s stance on Bitcoin mining are being rectified by Batten’s research, shedding light on the reality of the situation.
Bitcoin traded at $71,227, marking a 0.2% increase in the last 24 hours.
