Remember when China “banned” Bitcoin mining back in 2021? Well, plot twist: they’re quietly back in the game, and it’s actually kind of genius.
Here’s the tea: while everyone was busy watching the U.S. and Russia duke it out for crypto mining supremacy, China has been sneaking back into the top three like that friend who says they’re “totally done with their ex” but keeps sliding into their DMs.
The numbers don’t lie. China now controls about 14% of global Bitcoin hashrate, sitting pretty behind the U.S. (37.75%) and Russia (15.5%). Not bad for a country that supposedly banned the whole thing, right?
The Economics Are Just Too Good to Ignore
Here’s why this comeback makes perfect sense: China has ridiculously cheap electricity that literally can’t be used anywhere else. We’re talking about remote provinces with so much excess energy, they might as well be burning money if they don’t find something to do with it. Enter Bitcoin mining – the perfect energy vampire.
Plus, all that AI and data center investment? Turns out there’s plenty of spare capacity that miners can rent on the down-low. It’s like having a secret speakeasy, but for cryptocurrency.
The hardware sales tell the real story. Mining rig maker Canaan reported that China went from 30% of their revenue to over 50% in Q2 2025. That’s not exactly “we hate Bitcoin” energy.
What This Means for Everyone Else
For the big public miners like Marathon Digital and Riot Platforms, this is both good and bad news. Good because more hashrate means the network is more secure. Bad because, well, competition is competition.
The current mining landscape is getting spicy:
- Weekly hash volume is sitting at 1,042 EH
- Network difficulty is around 152.27T
- Mining rewards are averaging 3.14 BTC/day
Liu Honglin, who’s been watching China’s mining scene forever, basically called it: “You simply cannot stop such activities completely.” Economics always wins in the end.
The Bigger Picture
This isn’t just about China being sneaky (though they’re definitely being sneaky). It’s about how impossible it is to actually ban something when the economic incentives are this strong. Bitcoin mining is like water – it finds a way.
The real question isn’t whether China will keep mining Bitcoin. It’s whether they’ll eventually just admit what everyone already knows: the ban was more of a “suggestion” than an actual policy.
For investors and crypto enthusiasts, this is actually bullish news. A more distributed mining network is healthier for Bitcoin overall, even if it means your favorite mining stocks might face some extra competition.
The moral of the story? Never underestimate the power of cheap electricity and human ingenuity. China’s Bitcoin mining “ban” is looking more like a temporary timeout than a permanent breakup.