A New Chapter in the Bitcoin Mining War Begins: The Reason Why China Quietly "Returned"

Four years since the total ban in 2021. Chinese miners have not disappeared, but have returned in a different form.

The underwater mining infrastructure is making a comeback

According to official statistics, the mining power of China, which was supposed to have disappeared, has returned to the top three of the global hash rate as of Q3 this year. On the surface, it is under the guise of “cloud computing centers” and “waste heat recovery facilities,” but the reality is different.

At a small hydropower station in Sichuan, hundreds of thousands of mining machines are operational. The Northwest Industrial Park, while proclaiming itself as a “green energy utilization” hub, has actually transformed into a large-scale mining base. In extreme cases, tutorials have even appeared on social media showing how to hide mining equipment in clothing racks.

Economics as Motivation: The Disparity in Power Costs is Everything

Why take the risk of regulation? The simple numbers provide the answer:

• Inner Mongolia: 0.3 CNY/kWh
• Texas, USA: 0.9 yuan/kWh

The profitability level that allows even the risk of confiscation (with a loss of about 200,000 yuan) to be recovered in just three months. Before this profit margin, regulations will be blown away.

Threats to Global Security

However, the problem is more serious. The security of Bitcoin lies in the decentralization of computing power. If China's mining power becomes concentrated again, there is a possibility that the entire global network will be impacted during another policy shift.

It is not a game of cat and mouse between miners and regulators; rather, fundamental issues of decentralization and security itself are emerging.