According to the Cambridge Center for Alternative Finance (CCAF), China is once again contributing a significant portion to global bitcoin mining despite last year’s ban. Between September 2021 and January of this year, China’s contribution to the bitcoin mining network is second only to the United States, according to the CCAF Bitcoin Electricity Consumption Index (CBECI), the agency that maps mining activity around the world based on geolocation data reported.
After the bitcoin mining crackdown in the country last year, China’s market share fell to 0% in July and August. However, the latest CCAF data shows that the number increased by 22.29 % in September and fluctuated from around 20% from October to January. This shows that underground mining is happening in China.
“Off-grid electricity access and small-scale, geographically dispersed operations are among the primary means used by underground miners to conceal their activity,” the CCAF said in a statement. The sudden drop to 0% in July and August, followed by a rapid increase in the following months, suggests that miners may have been operating in secrecy and concealing their locations while using foreign proxy services to avoid attention and consideration.
Kazakhstan, for example, seems to be one of the favourite destinations for miners. According to CBECI, the Central Asian country’s internet market share skyrocketed to over 18% last August. In September, miners could have rest assured that foreign proxy services are having the desired effect and that they do not need to hide their operations in China.