In a striking revelation that challenges widely held perceptions, Daniel Batten, an analyst of the environmental impact of Bitcoin, revealed that BTC mining was never officially banned in China. According to Batten’s research, despite numerous reports to the contrary, the so-called “ban” was actually a temporary suspension, and mining activities have largely resumed across the country.
Bitcoin mining has never been banned in China
Slats report points out that China’s hashrate, which is a measure of the computing power used in mining and processing Bitcoin, currently represents around 15% of the global total. This information stands in stark contrast to the dominant narrative that emerged in May 2021, when many major media outlets reported a global crackdown on cryptocurrency transactions and mining operations by the Chinese government.
Batten argues that the network’s hashrate drop from 179.2 EH/s to 87.7 EH/s, a reduction of 51.1%, was temporary and misinterpreted as a permanent ban. “If you are a disruptive student and the principal expels you from school, these “days away from school” do not mean you have been expelled. It could mean you were simply suspended,” Batten explained, making an analogy to clarify the situation. situation in China.
Other investigative reports support Batten’s claim. For example, reports immediately following the “ban” indicated that many miners remained operational and unfazed. Both CNBC and NBC have reported on ongoing mining activities in China. Additionally, by December 2021, mining activity had rebounded to 19.1% of the global hashrate, according to Cambridge data, signaling a significant recovery.
“We have spoken with several mining companies and mining distributors in China. The message is clear: if you’re small, useful and not using it to get money out of China, you’re welcome. This philosophy has made Bitcoin mining more distributed and more based on clean energy“added Batten.
Innovative uses of Bitcoin mining in China have reportedly included recovering wasted renewable energy and recycling heat, indicating a more nuanced approach to Bitcoin mining than has been anticipated. previously believed. Batten also noted that local provincial governments often actively support Bitcoin mining, especially when it comes to small-scale operations that contribute to local energy solutions without attempting to circumvent capital controls.
“If you have between 200 and 500 miners and you want to exploit renewable energy, you are welcome. This is especially true in Inner Mongolia, China’s Texas, where there is a lot of wasted renewable energy that they want to monetize,” Batten said, adding that “China has let miners back who served a purpose specific “.
Additionally, there is no more off-grid coal mining. “Mining is primarily hydroelectric, much of which is less than 1 MW,” Batten revealed. This is in line with China’s commitment to achieve carbon neutrality by 2060. Thus, the “ban” on Bitcoin mining appears to be part of a broader effort to reduce the energy intensity of industries high consumption.
According to Batten, Western media have largely misreported this dynamic. This misunderstanding has perpetuated a false narrative about China’s position regarding Bitcoin mining, which Batten aims to correct. Supporting this perspective, Jaran Mellerud of Hashlabs noted: “There are still several large miners operating in China. The local government lets them operate because they desperately need economic activity there.
These findings not only call into question mainstream media’s portrayal of Chinese politics, but also highlight a broader pattern of misinterpretation and sensationalism in reporting on the legal and regulatory status of Chinese mining. Bitcoin around the world.
At press time, BTC was trading at $71,227, up 0.2% in the past 24 hours.
Featured image created with DALL·E, chart from TradingView.com
