Crypto Mining China: How China Dominated and Lost Bitcoin Mining
When you think of crypto mining China, the country that once controlled over 70% of Bitcoin’s hash power through state-backed mining farms and ultra-cheap hydropower. Also known as Bitcoin mining hub, it was the engine behind the entire blockchain network—until it vanished. In 2021, China wasn’t just participating in mining—it was running the show. Factories in Sichuan and Inner Mongolia ran thousands of ASIC rigs nonstop, powered by surplus hydroelectric dams and coal plants. Miners didn’t need fancy tech or global reach. They just needed cheap electricity and a warehouse.
But Proof of Work, the consensus mechanism that powers Bitcoin and keeps it secure without banks or central control, became a target. The Chinese government saw mining as a threat to financial control, energy policy, and carbon goals. By mid-2021, it shut down entire mining regions overnight. No warnings. No phase-outs. Just blackouts for ASICs. Thousands of machines were abandoned. Miners fled to Kazakhstan, the U.S., and even Iran—where crypto regulations, a patchwork of bans, toleration, and state exploitation vary wildly by country. The result? Bitcoin didn’t crash. It got stronger. The network adjusted its difficulty, and new miners with better hardware and smarter energy deals took over.
Today, mining hardware, specialized machines like the Antminer S19 or WhatsMiner M30S that solve cryptographic puzzles to earn Bitcoin is more efficient than ever—but also more expensive. The days of buying a rig on Taobao and plugging it into a rural power line are gone. Industrial-scale mining is now the norm, and it’s dominated by companies with access to renewable energy, not just cheap power. China’s exit didn’t kill mining—it forced it to grow up.
If you’re wondering why staking is now more popular than mining, or why Bitcoin’s energy use didn’t skyrocket after China’s ban, the answer is in the shift. The world didn’t stop mining—it redistributed it. And now, the real question isn’t where mining happens, but who controls the energy, the hardware, and the rules behind it. Below, you’ll find deep dives into how mining works, why it’s no longer viable for individuals, and how countries like Iran and the U.S. stepped into the vacuum China left behind.
