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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problemsBefore China’s 2021 crackdown, the country hosted a large share of Bitcoin mining because operators could pair access to specialized mining hardware with low-cost electricity. The advantage was not simply that China had abundant power: miners also moved between regions as electricity sources and prices changed with the seasons. Restrictions in 2021 drove mining activity elsewhere, although later estimates indicated a partial rebound in China.
What made China a major Bitcoin mining hub?
Bitcoin mining is the process of using computing power to compete to add new blocks to the Bitcoin blockchain. Large operations rely on application-specific integrated circuits, or ASICs: machines designed for the repeated calculations mining requires. Because these machines consume substantial electricity, power costs can strongly affect whether an operation is viable.
A 2021 peer-reviewed study in Nature Communications identified two advantages that worked together in China: access to specialized hardware manufacturers and cheap electricity. The study described China’s share of Bitcoin network hashing power as more than 75% in the historical pre-crackdown period it examined; that is a figure tied to the study’s period and method, not a current estimate. Read the study.
Hardware access and power costs are related but distinct advantages. Proximity to suppliers can ease equipment sourcing and logistics; cheap electricity can reduce a major recurring operating expense. Neither alone explains the full concentration.
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Why did miners move between Chinese regions?
Mining locations within China were not fixed. Cambridge Centre for Alternative Finance reporting described seasonal movement: miners and equipment shifted toward Sichuan during the rainy season to use abundant, lower-priced hydropower, and toward regions including Xinjiang during the dry season. Different regions offered different combinations of power availability, price, infrastructure and seasonal conditions. The cited sources do not establish a consistent province-by-province electricity-price ranking.
Sichuan during the wet season
Cambridge reported that Sichuan’s share of China’s Bitcoin mining power rose from 14.9% at the beginning of the 2020 wet season to 61.1% at its peak. Those figures describe a seasonal change in China’s mining power, not Sichuan’s share of global Bitcoin mining or a permanent provincial share. See Cambridge’s account of the seasonal shift.
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Dry-season alternatives
When the rainy season ended, the hydropower opportunity changed. Cambridge described miners moving toward areas including Xinjiang in the dry season. The seasonal pattern matters: a region attractive during one part of the year was not necessarily the cheapest or best-powered choice throughout the year.
Did China’s mining run on renewable energy?
No single energy source characterized all Chinese mining. Hydropower could attract miners to Sichuan in the wet season, but that does not mean mining across China—or even across the year—was powered entirely by renewable electricity.
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Cambridge’s model estimated that coal accounted for 36.6% of Bitcoin mining’s energy mix and hydropower for 14.9% in January 2022. These are modeled estimates for that month, not measurements of every mine or a description of China’s current energy mix. Electricity sources varied by location and period. Read Cambridge’s energy-mix analysis.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What changed after China’s 2021 crackdown?
China’s restrictions prompted a major relocation of mining activity across national borders. The initial collapse in estimates of China’s share should not be mistaken for proof that mining never returned: later Cambridge estimates indicated a partial rebound. Those estimates draw on sampled facility and mining-pool data rather than a census, so they describe an estimate, not a complete count of every operation. See Cambridge’s later estimate and its related reporting.
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The historical explanation for China’s prominence is therefore a combination of industrial logistics, electricity economics and seasonal movement—not a claim that China still hosts the world’s biggest mines. The evidence cited here establishes a pre-2021 concentration and a subsequent shift, but does not establish current country rankings or the present scale of mining in China.
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