Key Takeaways
- Chinese mining pools continue to control over 55% of the Bitcoin network's hashrate despite the 2021 Bitcoin and crypto ban.
- Mining pools based in the United States are slowly increasing their share of the global hashrate, having 40% of the network’s hashrate pointed to them now.
- It has to be noted that the location of miners pointing their hashrate at these pools cannot be conclusively determined.
China's Continued Bitcoin Mining Dominance
Chinese mining pools continue to control over 55% of the global hashrate Bitcoin network despite a 2021 Bitcoin and crypto ban.
The ban prohibited all forms of Bitcoin and crypto mining and trading within China, but miners have found ways to operate.
Ki Young Ju, CEO of CryptoQuant, claims that Chinese pools primarily support smaller miners in Asia.
Shifting Bitcoin Mining Power to the U.S.
Bitcoin mining pool dominance is gradually shifting to U.S. mining firms, which now have 40% of the hashrate pointed to them.
U.S. mining pools mostly cater to institutional miners, signaling a growing role in global Bitcoin operations.
Ki Young Ju claims that this trend shows a shift in mining power from Asia to North America.
China's Regulatory Changes and Future Prospects
China plans to amend its Anti-Money Laundering regulations in 2025 to cover Bitcoin and crypto transactions.
These changes aim to impose stricter oversight on Bitcoin and crypto use in response to increased money laundering risks.
Galaxy Digital CEO Mike Novogratz suggests China may reverse its ban by the end of 2024.
