Originally published on: September 26, 2024
Is China truly in control of 55% of the Bitcoin network hashrate as claimed by CryptoQuant founder Ki Young Ju? Let’s delve deeper into this debate and uncover the real story behind the dominance.
The Global Miner Distribution Discrepancy
While it is a known fact that Bitcoin mining pools like Antpool, F2pool, MARA Pool, and Foundry have their roots or management teams based in specific countries such as China, the reality of miner distribution tells a different tale. Contrary to popular belief, miners contributing to these Chinese pools come from various corners of the world, including the United States.
A recent analysis by TheMinerMag revealed that in August 2024, two US-based mining pools, MARA Pool, and the USA Foundry Pool, were responsible for mining a significant 33.6% of all blocks. This statistic highlights that the hashrate attributed to these pools is not solely representative of US-based miners but also includes participants from different regions who have chosen to join pools domiciled in other countries.
The Complex Global Hashrate Landscape
Unraveling the exact geographical breakdown of Bitcoin hashrate remains a challenging task due to the intricate nature of Bitcoin mining. This complexity adds layers of nuance to the ongoing global hashrate dynamics, disrupting the narrative of China’s unilateral control and shedding light on a more diverse and decentralized miner participation across borders.
China’s Cryptocurrency Regulations and the Hashrate Conundrum
Despite its blanket ban on cryptocurrency activities in 2021, China has been making waves with recent speculations of a potential unban on Bitcoin, a move that has stirred mixed reactions within the crypto sphere. The introduction of a new anti-money laundering framework slated for 2025 underscores China’s regulatory efforts to combat illicit financial activities related to digital assets.
Promoting Compliance and Risk Management in the Financial Sector
In light of the evolving landscape of financial technology, China’s Legislative Affairs Commission is exploring revisions to enhance monitoring capabilities for new financial technologies to prevent money laundering risks effectively. Collaboration with China’s central bank and financial institutions is anticipated to establish comprehensive guidelines for combating potential money laundering challenges posed by emerging financial technologies like cryptocurrencies and digital assets.
By shedding light on the intricate web of miner distribution, regulatory developments, and global hashrate intricacies, the narrative surrounding China’s BTC hashrate dominance undergoes a transformative shift, unveiling a more nuanced and diversified reality beneath the surface.
