The recent Cambridge report confirms that the United States currently lead the global production of bitcoins, raising questions about how China reacts. Although the country has long occupied an anti-Critical position, Chinese mountain pools historically controlled a significant part of the global bitcoin hashrat.
The current competitive advantage of the United States and renewable hostility in comparison with the trade policy can motivate China to repetition. Beincrypto talked with representatives of the coin and vanchang bureau to understand that China could encourage their position on digital assets.
USA overtakes China as the best Bitcoin mining center
The United States has firmly established itself as the world’s largest Bitcoins production center. The recent report of the Cambridge Center for Alternative Finance (CCAF) showed that the United States accounts for 75.4% of the reported Hashrat.
This latest development confirms a noticeable change in power in comparison with the dominance of bitcoins. China became the leading world country of Bitcoins in 2017, using its vast infrastructure of the mining industry and low electricity costs to make more than 75% of the global speed at one point.
Nevertheless, the country will later arrange the industry.
Chinese crypto is a consumption
In 2019, the National Commission for the Development and Reforms of China (NDRC) announced its intention to prohibit the extraction of cryptocurrencies by releasing the draft law that classifies it as an “unwanted industry”.
Two years later, at least four Chinese provinces began to close the prey of minerals. These repressions intensified against the background of problems from excessive energy consumption.
By the end of 2021, the government announced all crypto-tied transactions illegal, further strengthening the ban and banning foreign exchanges to serve citizens of China.
Nevertheless, China has a proven ability to adapt to geopolitical shifts that can jeopardize its economic domination, and the current environment can represent such a problem.
Has the bitcoin mining in China truly stopped?
Even with the official position of China in relation to cryptography, mining did not stop in the region. In July 2024, the environmental analyst Bitcoin Daniel Batten said that hedge in China is currently approximately 15% of the total number of worlds.
“Despite the official ban, the infrastructure is already valid: from offshore production to cross -border shopping centers. With a large amount of global impulse for taking cryptography and American host, China may be stimulated to rely on more strategically, even if it is unofficial, ”said Nick Pukrin, a co-founder of a fireplace, Beincrypto said.
China also has a geographical advantage over the United States, especially with regard to technological achievements.
Crypto-perch, especially for cryptocurrencies of checking work, such as bitcoin, depends on those who are specific for the application of equipment (ASIC) to process the necessary complex calculations for checking and mining minerals.
China’s position as a leading exporter of equipment for mining cryptography, especially for the United States, gives him a potential advantage if he decides to revive his mining sector.
The unfolding tariff dispute between the two countries adds a layer of uncertainty to the long -term economic efficiency of costs in the United States.
Pukrin believes that a combination of trade friction and an invigorating impetus for crypto -dominating can be sufficient for China to revise its position.
“It is unlikely that China will soon make a public divorce in its crypto major and a ban on trade in the near future. However, since the American miners will be higher and higher proportions of Hashrat Bitcoin, China will definitely pay attention and may well confirm their position, ”said Pakrin Bimmin.
Nevertheless, in China there are strategies, in addition to rebooting their Bitcoins production industry, in order to undermine the dominance of the United States.
The nuanced approach of China outside the influence of the United States
Despite the fact that China opens against the widespread use of cryptocurrencies within the country, it can still see the value in digital assets for balancing global dominance in US dollars in US dollars.
Several countries around the world either accepted or consider the digital currencies of the Central Bank (CBDC) to strengthen their internal currencies. China is located on the front edge of these events.
“Despite the ban on the production of bitcoins, China actively participated in the digital assets space thanks to the initiatives such as the CDBC and Digital Yuan, or E-CNY study,” said Wanchain Temujin Loue Beincrypto, General Director.
In fact, China’s efforts to create a digital yuan are partially due to his desire to divide his economy and reduce his dependence on the US dollar.
Louis also suggested that any step that China takes will not only be based on what the United States is doing or not doing.
“As always, with China the best approach. Any changes in politics will not be associated with US tariffs. Rather, China’s decisions will be informed about the world market trends and China’s own internal strategy, ”Louis added.
Nevertheless, China’s decisions on digital currency, in turn, will affect how his position in relation to cryptography continues to develop.
“The weakening of dominance in US dollars, regardless of whether it is aggravated or caused by the approach of President Trump to tariffs, may encourage China to be more aggressive in [its]Efforts in the internationalization of Yuan, including digital yuan, or e-cny. Any changes in the wider China strategy will be reflected in [its] Position in the direction of Crypto, ”he concluded.
The action of China in other areas of international trade already proves how tended to nuanced changes in his policy.
Can conflicting crypto -policies of China signal the change?
In addition to evaluating digital currencies, such as E-CNY, China’s position on cryptocurrency was already somewhat contradictory. These discrepancies can fuel the belief that the country may just want to return – or at least soften – this is a complete ban on mining.
A month ago, the Vaneck investment company confirmed that China and Russia are two countries, especially burdened by US sanctions – reports some of their energy transactions using bitcoins.
“Since the US dollar is increasingly used as a political lever, especially in tariff economies, other countries are actively studying alternatives. Indeed, many countries of the world, including China and Russia, are already using Bitcoin as an alternative to trade in raw materials and energy, for example. This trend is only accelerated, since digital assets become higher parts of the global economy. ”
According to the analysis of Pacrine of these indicators, the “shadow crypto -economics” of China, according to forecasts, will be expanded this year, which can lead to confirmation of its power. This revival will be primarily in response to efforts on donollarization, and not to the reaction to the dominance of the United States in mining.
Most likely, we will see how this activity is increasing in the near future, especially when more and more countries use cryptoodal systems to bypass systems with dominant in dollars, ”he turned.
It will decide to interpret the intentions of China, especially in relation to cryptocurrency, observing its actions, and not relying exclusively on his official statements.
