Bitcoin production has roared back in China thanks to an underground mining scene

Bitcoin production has roared back in China thanks to an underground mining scene

Miners aren't giving up in China despite Beijing's ban on the practice. China was once the world's biggest crypto mining hub, accounting for between 65% to 75% of the total "hash rate" — or processing power — of the bitcoin network. But the country's share of global bitcoin mining capacity in July and August 2021, according to Cambridge University data, after authorities launched a fresh crackdown on cryptocurrencies. Among the steps China took was to , the power-intensive process that leads to the creation of new digital currency. That resulted in several miners fleeing to other countries, including the U.S. and Kazakhstan, which borders China. But, as CNBC has , several underground mining operations have since emerged in China, with miners taking care to work around Beijing's ban. Now, from the Cambridge Centre for Alternative Finance shows that Chinese bitcoin mining activity has quickly rebounded. By September 2021, China made up just over 22% of the total bitcoin mining market, data from Cambridge researchers show. It means China is once again a top global player in bitcoin mining — second only to the U.S., which eclipsed China as the largest destination for the sector last year. There is one caveat: