China Never Really Banned Bitcoin Mining, Daniel Batten Clarifies

Contrary to widespread belief, China never truly banned Bitcoin mining. Instead, China has been utilizing Bitcoin mining for wasted renewable energy harvesting and heat recycling. This revelation comes from a detailed analysis by Daniel Batten, who highlights the misreporting by Western media on this issue in an X-post.

According to Batten, the idea of a ban was falsely propagated. “There is no evidence of a ban having been written into any Chinese legislation,” he states. This claim is supported by the fact that mining maps and firsthand accounts from miners do not corroborate the “ban” narrative.

In 2022, CNBC acknowledged that a significant amount of mining was still occurring in China but inaccurately described it as miners “risking it all.” This assertion was baseless, contradicting the experiences of miners and companies within China.

Batten’s research involved discussions with multiple mining companies and distributors in China. The consensus was clear: small, useful operations that do not aim to transfer money out of China are still welcome. This approach has led to more distributed and clean-energy-based Bitcoin mining.

The idea of a ban has played into mainstream media narratives that Bitcoin mining is unwelcome by nation states. However, countries like Kenya, Ethiopia, Bhutan, and El Salvador are either already mining or are on the verge of starting their own operations.

Batten’s recent newsletter delves deeper into this issue, providing background evidence and highlighting how mainstream media has misreported the relationships between the Venezuelan and Paraguayan governments and mining companies.

The key points from Batten’s findings include:

1. Over 15% of the global hashrate still comes from China.
2. Miners with 200-500 units using renewable energy are allowed to operate.
3. Inner Mongolia, referred to as the Texas of China, has abundant wasted renewable power that the government seeks to monetize.

In 2021, China did suspend all mining activities, causing the global hashrate to halve. However, they later allowed back the miners they deemed beneficial. China’s hashrate also reflects this, showing a significant but temporary drop before stabilizing as selected operations resumed.

Batten concludes that it’s crucial to stop referring to China’s actions as a ban, as this misrepresentation fuels incorrect narratives about Bitcoin mining’s acceptance globally.