Despite China’s ban on cryptocurrency mining, Chinese mining pools account for 54% of the market share, according to CryptoQuant CEO Ki Young Ju.
Despite China’s ban on #Bitcoin mining, Chinese mining pools still hold nearly 54% market share.
While not all participants in these pools are Chinese, some mining farms might still be operating covertly in China, with authorities possibly concealing data. https://t.co/OqEYB5R69w pic.twitter.com/JKCvcj2R3X
— Ki Young Ju (@ki_young_ju) July 1, 2024
“While not all participants in these pools are Chinese, some mining farms might still be operating covertly in the country, with authorities possibly concealing data,” the analyst suggested.
Ju speculated that some cryptocurrency mining pools might be under government control.
The CEO of CryptoQuant responded to a post by VanEck’s head, Matthew Sigel, who noted the cessation of data publication on renewable energy usage in China.
According to Bloomberg, China has not provided information on the amount of wasted “green” capacity. In recent months, the country has faced an excess of renewable energy, although it remains a leader in this field, the publication writes.
“If the Chinese Communist Party wanted to start mining some Bitcoin, wouldn’t one important step be to stop publishing data on renewable energy?” Sigel pondered.
According to World Population Review, the largest share of Bitcoin network hash rate belongs to the United States (37.8%), followed by China (21.1%), and then Kazakhstan (13.2%).
In 2021, Chinese authorities effectively banned cryptocurrency trading. Digital asset traders face fines and even imprisonment.
Nevertheless, local investors’ interest in digital assets is growing amid economic challenges. In January 2024, Reuters confirmed the existence of a thriving underground crypto market in China.
At the end of the same month, the Hong Kong branch of Chinese asset manager Harvest Fund Management applied to launch a spot Bitcoin ETF.