Is there bitcoin mining in China?

According to reports, more than 90% of China’s bitcoin mining capacity is estimated to be closed. It is thought that between 65% to 75% of all global bitcoin mining takes place in China. Though it may not be good news for bitcoin miners in China, others could stand to benefit. What is bitcoin mining?

Why is bitcoin mining so difficult?

Bitcoin mining has become easier and more profitable, as the pool of miners competing to create tokens shrinks due to China's strict crackdown on the country's crypto operations. The level of difficulty for mining bitcoin plunged by 28% on Saturday, according to data from BTC.com, to mark the largest drop in the network's history.

Why is bitcoin so profitable?

Due to how bitcoin was designed, a drop in the hash rate also led to a drop in the network difficulty, meaning it was easier to mine with less people competing, and subsequently more profitable.

How did China's crackdown on cryptocurrency mining affect bitcoin's value?

In late May, China’s State Council signaled a crackdown on cryptocurrency mining, causing bitcoin’s price to plummet by 30% and casting a pall across the entire industry, which collectively lost over $1 trillion in value.