A recent report in Cambridge confirms that the United States is now leading Bitcoin's global mining, which motivates questions about how China will respond. Although the country has long held an anti-crypto bearing, Chinese mining pools have historically controlled a large portion of the global bitcoin hashrate.
The currently competitive US edge and updated hate of trade policy can motivate China to re -evaluate. Beincrypto spoke with representatives from the Bureau and Wanchain to understand what could encourage China to change its bearing towards digital property.
The US searches China as Bitcoin's leading hub of mining hub
The US has strictly established itself as Bitcoin's largest mining hub in the world. A recent report by the Cambridge Center for Alternative Finance (CCAF) revealed that the US was worth 75.4% of the reported hashrate.
This latest development proves a remarkable return of power to the dominance of bitcoin mining. China has emerged as the leading country of Bitcoin mining in the world early in 2017, using extensive mining infrastructure and low electricity costs to contribute up 75% of the global hash rate to one point.
However, the country will eventually destroy the industry.
China's crypto crackdown
In 2019, the National Development and Reform Commission of the China (NDRC) signed its desire to inhibit cryptocurrency mining by releasing a draft law that categorized it as a “incredible industry.”
Two years later, at least four Chinese provinces began to close mining operations. These crackdowns intensify amid concerns over excessive energy consumption.
By the end of 2021, the government declared all crypto -related transactions, further strengthened by banning and banning foreign exchanges from serving Chinese people.
However, China holds a proven capacity to adjust to geopolitical shifts that can endanger economic dominance, and the current environment can present a challenge.
Did Bitcoin really stop mining in China?
Even with China's official stance toward crypto, mining activity did not stop within the region. In July 2024, Bitcoin Environmental Impact Analyst Daniel Batten reported that the hashrate within China is currently worth about 15% of the global total.
“Despite the official prohibition, the infrastructure is in place: from offshore mining to cross-border trading hubs. With a more global momentum behind the Crypto adoption and the US leader, China can find one's own who does not motivate to rely on more strategic, even unofficial,” Nic Puckrin, co-founder of Barya of Baralya of Barya of Barya of Barya, Barya of Barya of Barya, “Coles Bureau, told Beincrypto.
China also has the advantage of geographically in the United States, especially in terms of technology advances.
Crypto mining, especially for proof-of-work cryptocurrencies such as Bitcoin, depends on the specific integrated circuit (ASIC) equipment to handle the necessary complex calculations for validation and mining.
China's position as a leading export of crypto mining hardware, especially in the US, gives it a potential advantage if it should decide to live the mining sector.
The unchanged tariff dispute between the two countries adds a layer of uncertainty to the long -term cost efficiency in US mining operations.
Puckrin believes the combination of trade friction and the US vigorous push for crypto dominance may be sufficient to rebuild China's position.
“It is unlikely that China will make a public U-turn on its crypto mining and trading ban anytime soon. However, with US-based miners for higher and higher proportion of bitcoin hashrate, China depends on paying attention and may be silent re-studying its bearing,” Puckrin told Beincrypto.
However, China has techniques beyond the restart of the Bitcoin mining industry to break the dominance of the United States.
China's approach beyond US influence
Although China opposes the widespread use of cryptocurrencies indoors, the value of digital ownership can still be seen to count the dominance of the US dollar global currency.
Many countries around the world adopt or consider central digital currencies (CBDC) to strengthen their domestic currencies. China is ahead of these developments.
“Despite the ban on bitcoin mining, China has actively participated in the digital asset space, through initiatives such as CDBC Research and the Digital Yuan, or E-CNY,” the CEO of Wanchain Temujin Louie told Beincrypto.
In fact, China's efforts to create a digital yuan are partially encouraged by its desire to de-dollar its economy and reduce reliance on the US dollar.
Louie also suggested that no matter what China moves, it does not just base its decision on what the US is doing or not doing.
“As usual, in China, a nuanced approach is best. Any policy changes are not due to US tariffs. Instead, China's decisions will be given knowledge of the global market trends and China's own domestic approach,” Louie added.
That said, China's decisions about digital currency are, in turn, will affect how its position in crypto continues to develop.
“Demand of USD dominance, whether aggravated or caused by President Trump's approach to tariffs, can boost China to be more aggressive in [its]Efforts to internalize Yuan, including Digital Yuan, or E-CNY. Any change in China's wider approach can be seen in [its] Stance to Crypto, ”he concluded.
China's activity in other areas of international trade confirms how changes in its policy are likely.
Can China's opposing crypto policies change?
In addition to appreciating digital currencies such as E-CNY, China's stance in crypto has proven to be quite contradictory. These differences – this can be fuel in the belief that the country can only be ready to return – or somehow soften – its total mining ban.
A month ago, investment firm Vaneck confirmed that China and Russia -two countries were particularly burdened by US penalties -have been reported to have some of their energy trade using Bitcoin.
“Through the US dollar especially used as a political lever – by tariff economies – other countries are actively exploring successors. In fact, many countries around the world, including China and Russia, are already using Bitcoin as an alternative for trading in goods and energy, for example. by Puckrin to Hellin.
According to Puckrin's analysis of these indicators, China's “Shadow Crypto Economy” is expected to expand this year, which may result in a reproduction of its power. This resurrection is mainly in response to de-dollarization efforts, rather than a reaction to US dominance over mining.
We will probably see this activity ramping up in the near future, especially when more countries use crypto to miss the systems that the dollar manages, ”he concluded.
It will remain important to interpret China's goals, especially about cryptocurrency, by observing its actions rather than relying solely on its official statements.
Refusal
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