Quick Takeaways:
- China nowadays manipulates around 14% of the global Bitcoin hashrate despite its mining ban.
- Excess electrical energy in Xinjiang and Sichuan is fueling a profitable cloak-and-dagger excavation revival.
- Rising Bitcoin excitability and chinchy index have boosted miner incentives.
China’s Mining Comeback Surprises the Market
China has unexpectedly returned to the top tier of global Bitcoin mining. Despite its nationwide ban, the res publica instantly contributes roughly 14% of the worldwide hashrate.
This resurgence places China behind merely the United States and Russia; a regulatory shimmy triggered the comeback.
Alternatively, economic motivations have quite revived a diligence once declared dead.
Surplus Power Creates a Hidden Mining Boom
Several provinces, including Xinjiang and Sichuan, are generating redundant electricity. Selling that great power at a loss makes little economic sense for local operators.
Miner realized they could convert the surplusage into profitable Bitcoin instead. This theoretical account transformed maroon DOE into revenue.
The revival happened restfully, without regulatory approval or public acknowledgment. Miner merely complies with economics.
From Zero to Third Place Again
China’s hashrate collapsed to zero after the 2021 crackdown. For years, many believed the ban had permanently pushed mining to North America.
However, recent data shows China has climbed back to third place globally.
The return did not happen gradually. Hashrate data revealed the surge only after it became significant. The underground structure rebuilt itself faster than anyone expected.
Volatility Drives Profitability
The renewed mining wave is not tied to steady Bitcoin appreciation. Instead, miners are profiting from wild price swings.
High volatility enables them to sell mined Bitcoin during price spikes, boosting margins. Combined with cheap local electricity and concerns over the weakening U.S. dollar.
Mining in China has become extremely profitable, or a ban. Economic incentives once again overwhelmed regulatory pressure.
A Comeback Fueled by Incentives, Not Ideology
China attempted to eliminate Bitcoin mining. But the industry adapted, reorganized, and found new pathways to operate underground.
The comeback highlights how powerful incentives can override prohibitions on. The global mining landscape has shifted once more. Not through ideology or policymaking, but through simple economic math.
China’s mining revival shows that Bitcoin infrastructure grows wherever profit exists.