In July 2021, the government banned the mining of BTC and other cryptocurrencies in its territory, with the aim of reducing electricity consumption.
This measure was a direct blow to the hashrate of the Bitcoin network, because it momentarily stopped the growth in the mining industry, which stood out for innovation in the creation of more efficient equipment and technology for that practice.
This policy ended with a significant exodus of miners, who migrated to countries with more friendly regulations for the sector such as the United States and Kazakhstan.
In addition, as a result of this ban, illegal mining has taken place in China. To do this, small miners find ways to continue operating by dividing their operations into several farms spread across the country. This makes it difficult for the authorities to detect them.
Other miners use local energy sources, such as hydroelectric dams in rural areas independent of China's main power grid.
