Bitcoin Mining Resurgence in China: Despite Ban, Hashrate Rises

Despite a government ban imposed in 2021, Bitcoin mining is experiencing a resurgence in China, now ranking as the third largest global player in the field. This growth is fueled by economic incentives, untapped energy resources, and subtle shifts in policy. Key factors driving this trend include: 1) abundant electricity at affordable costs in areas like Xinjiang and Sichuan. 2) the increased production of mining rigs by companies such as Canaan Inc., which benefits from China’s proximity to the global market and reduced tariffs due to U.S.-China trade tensions; and, 3) a surge in local demand for Bitcoin mining equipment.