Crypto Mining China: What Happened and Why It Matters Today

When people talked about crypto mining China, the global epicenter of Bitcoin production where cheap electricity and loose regulation fueled massive mining farms. Also known as Chinese Bitcoin mining, it was responsible for over 70% of the world’s hash power before 2021. That changed overnight. In mid-2021, China banned all cryptocurrency mining activities. No warnings. No phase-out. Just a hard stop. Mines in Sichuan, Inner Mongolia, and Xinjiang were shut down. Thousands of machines were abandoned, sold off, or shipped abroad. The global Bitcoin network didn’t crash—it adjusted. And that’s the real story.

What made crypto mining China, the global epicenter of Bitcoin production where cheap electricity and loose regulation fueled massive mining farms. Also known as Chinese Bitcoin mining, it was responsible for over 70% of the world’s hash power before 2021. so powerful wasn’t just the number of machines. It was the access to hydroelectric power, abundant, low-cost energy from dams in southern provinces that made mining profitable even when Bitcoin prices dipped. It was the scale of mining hardware, custom ASIC chips built by companies like Bitmain and MicroBT that outperformed consumer-grade gear by miles. And it was the lack of oversight—no taxes, no permits, no environmental reviews. When the government cracked down, it wasn’t just about controlling speculation. It was about energy use, financial sovereignty, and reclaiming control over the nation’s power grid.

After the ban, the world didn’t lose Bitcoin mining—it redistributed it. The U.S., especially Texas and Georgia, became the new hubs. Kazakhstan, Russia, and Canada picked up the slack. But the real shift wasn’t geographic—it was structural. The centralized control that China once had vanished. Now, mining is more decentralized, more resilient, and more transparent. You can’t shut down a global network by closing a few provinces.

Today, if you’re still thinking about mining Bitcoin or other coins, you need to understand what happened in China—not as a history lesson, but as a warning. Regulatory risk is real. Energy costs aren’t going down. Hardware gets obsolete fast. And the days of easy profits from backyard rigs are long gone. The posts below cover the tools, trends, and traps that matter now: how to mine profitably outside China, what alternatives exist to traditional mining, and why even big players are moving toward staking and other consensus models. You won’t find fluff here. Just what works, what doesn’t, and what you need to know before you invest time or money.

Crypto Taxation in China: Why It Doesn't Exist Under Current Law

China doesn't tax cryptocurrency - it bans it entirely. No trading, no mining, no holding with legal protection. Learn why crypto taxation doesn't exist in China and what happens if you try to use it.

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