China is mining bitcoin underground: Report

Posted by Namcios, bitcoinmagazine.com

Share on Facebook

Tweet on Twitter

According to a report by CNBC, bitcoin miners have found ways to keep operating in China despite the country’s comprehensive efforts to crack down on the industry.

China used to be the country with the most significant share of hashrate. But that began to change in May when Chinese authorities began cracking down on Bitcoin and bitcoin mining. The increased regulatory scrutiny led to tangible impacts on BTC miners and exchanges, which started limiting or putting an end to their activities. In under a month, the Chinese crackdown led ASIC maker Bitmain to stop sales, a sharp decline in Bitcoin’s total hash rate, and an “ASIC exodus” to ensue as the bitcoin mining landscape began to change.

By September, China had issued a complete ban on Bitcoin. Despite the prohibition, the peer-to-peer network saw nearly 145 Bitcoin nodes still running on Chinese soil after a few days. According to data from Bitrawr.com, there are currently 125 nodes in the Asian country. Similarly, it appears that not all bitcoin miners have fled China.

Ben, a Chinese miner, told CNBC that he had gone underground, spreading his mining equipment across multiple locations to decrease the chances of being spotted on China’s power grid. He has also taken steps to conceal his digital geographical footprint and go behind the meter, pulling electricity from small power sources unconnected to the country’s larger grid…read more.