Chinese minors came out of radars and censuses in June, when the land of the rising sun extended a formal ban to all of their activity. Then leader, China was donating its dominance over the functioning of Bitcoin to the United States, now responsible for 35.4% of global mining (as of September 2021 according to the Financial Times).
Got out of the radars, or under the radars? In a new survey published by CNBC, what seemed very likely turned out to be true: many minors stayed, and continue their activity. A switch into hiding that could raise 20% of the shares of global Bitcoin mining. Far from the 0% announced by official data and censuses of Financial Times and the University of Cambridge.
Bitcoin underground mining
Clandestine, the activity of Bitcoin miners in China is now said to be underground. The biggest players in the country, with international activity and known to the authorities, participated in the migratory movement to the United States and Kazakhstan, but the smaller-scale miners remained. The main reason ? Relocating their activity was not possible in view of the sanitary restriction measures, and reselling their machine seemed complicated in view of the influx of new machines already available for sale.
In numbers, a report by Chinese cybersecurity company Qihoo 360 estimated that computers mine bitcoin at 109,000 daily IP addresses. “Most of these addresses, according to the report, are in the provinces of Guangdong, Jiangsu, Zhejiang and Shandong”, detailed CNBC. To go under the radar, they divided their operations into several smaller entities, and outside cities.
“Some have divided their mining operations into several farms across the country that authorities were less likely to notice. Others have relied on small local energy sources, like tiny dams in rural areas that are not connected to the main electricity grid ”, explained the CNBC investigation.
On December 15, 2021, a first clue gave ear to the ear of the extent of the activity and its resistance movements. An arrest warrant was issued to a former leader of the Chinese Communist Party, along with several other members, linked to illegal cryptocurrency mining activities. In October, Zhejiang province announced its plans to combat illegal mining activity. “Our province recently launched a joint special rectification action to comprehensively combat the use of public resources participating in virtual currency mining and trading activities”, could we read in a press release.
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Source From: Presse-Citron
I am a technology author with 8 years of experience in journalism. My writing covers the latest technology advancements and trends, drawing on my expertise in news journalism and social media platforms. I have contributed to major media outlets such as The New York Times, The Wall Street Journal, and Reuters.
