China Controls 55% of Bitcoin Mining Newtork Despite Ban
Despite its stance against crypto, China still controls 55% of the Bitcoin mining network even though it has a ban on the asset. Indeed, the country is a key player in BTC mining despite the restriction that was imposed on the asset class more than three years ago.
The country maintains control over more than half of the entire global network, according to CryptoQuant CEO Ki Young Ju. In a post to X (formerly Twitter), he discussed the dominance of the industry shifting from the United States. Moreover, he discusses how it has transferred to the Eastern Asian nation.
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China Controls 55% of Bitcoin Hashrate Despite Ban as US Lags Behind
Amid his bid for reelection in 2024, former President Donald Trump has placed a spotlight on crypto. Specifically, he has consistently expressed his desire for the United States to remain the top player in the developing asset class. Although those hopes are possible, they have often been derailed by the country’s own regulatory environment.
That has led it to lag behind in terms of crypto adoption. Subsequently, China maintains 55% control over the Bitcoin mining network despite its blanket ban on the asset class. The 2021 issued restriction has not affected the country’s development into the BTC mining sector.
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Ju wrote that in comparison to China, the US only controls 40% of the mining hash rate. Moreover, he noted that “US pools primarily cater to institutional miners in America, while Chinese pools support relatively smaller miners in Asia.” Therefore, this provides some context to the dominance shift.
The lead could get even larger next year, however. China is planning an amendment to its Anti-Money Laundering (AML) regulations. Set to go into effect in 2025. That has arrived with consistent reports that China is prepared to unban cryptocurrencies in the next year. It could be huge for the growing discrepancy between both the US and China regarding their status in crypto.