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Chinese bitcoin miners still operating secretly

After the Chinese government’s stance against bitcoin mining operations, many Chinese bitcoin miners are still running their operations secretly. To protect most of their livelihood and for their survival, they rely on a combination of grid electricity, hydroelectric power and internet protocol.

Chinese bitcoin miners work secretly and survive using erased energy sources. Recently, there was a great migration and many Chinese miners moved to more crypto-friendly jurisdictions of China in North America and Central Asia. This migration was sparked by China’s recent blanket ban on cryptocurrency, which pushed many middle-class miners to a state of neglect.

Some miners have, however, remained in communist countries as a result of the problems caused by the pandemic: travel limitations, supply chain problems, and a lack of overseas contacts and money. 

What process do they follow?

Surviving miners rely on hydroelectric power to continue their mining operations. The miners using these hydroelectric dams are scattered in the provinces of Sichuan and Yunnan. The drawbacks are many, but they do not get in the way of most bitcoin miners. 

For sustainability, most bitcoin miners aim to build infrastructure with compatibility, mining equipment and dam energy. 

These miners have two departmental sites (8 megawatts and 12 megawatts ). These sites use VPN to avoid government detection. China Telecom works as a childcare dog for the Chinese government on mining activities.

According to a report published recently by China Cyber Security Company QIHOO 360, there are 109,000 mining Internet Protocol  (IP) addresses daily. The report demonstrates that mining continues to thrive despite national prohibition. Some miners use a mining pool to deal with operations. 

The mining pool support

Mining pools also avoid detection as Chinese miners begin to gain traction. When the block is resolved, the mining pool’s name is often linked to the public ledger block. However, this name does not have to be attached because it prevents the Chinese miners from being caught.

 Data packets in the Chinese data center are encrypted to represent the exchange of data as general web traffic to the person who monitors data exchange. Overseas mining pools also help China’s data centers in technical issues. You can hide the number of unique IP addresses of the data center. If there are many IP addresses, it’s also a red flag for the government. 


The Chinese bitcoin miners are continuing their operations despite the latest ban. The overseas mining pools support their activities in generating electricity. But only time will dictate what their next action will be if there is a fluctuation in rainfall.