Chinese miners continue to operate secretly.

Many miners continue to work in China. To defend their livelihoods, Chinese miners use a combination of grid electricity, hydropower, and internet IP address manipulation.

Chinese miners continue to operate secretly.
Source:  Andrey Rudakov/Bloomberg

Chinese miners are operating in the shadows, surviving by utilizing off-grid power sources. Recently, there has been a major exodus and movement of Chinese miners to more crypto-friendly governments in North America and Central Asia. This comes on the heels of China’s nationwide ban on cryptocurrencies. Many under-resourced miners were left out in the cold.

Some miners have chosen to remain in the Communist regime. This is owing to pandemic travel limitations, supply chain challenges, and a lack of international relationships and funds.

The miners that have survived are utilizing a combination of grid electricity and hydropower. Hydro-power miners get electricity from dams located throughout the regions of Sichuan and Yunnan. These dams are less visible and are less likely to draw the attention of the authorities. This is especially viable during the rainy season, which lasts from May to the end of October. Miners build their own infrastructure to make dam electricity compatible with their mining equipment.

One miner has two locations (8 megawatts and 12 megawatts). VPNs are used by the sites to avoid detection by the authorities. In terms of mining activities, China Telecom serves as a monitor for the Chinese government.

Qihoo 360, a Chinese cybersecurity firm, has published a research. It demonstrates that mining continues to thrive despite a nationwide prohibition. Every day, there are 109,000 active mining internet protocol (IP) addresses, according to the data. Mining pools are being used by some miners to disguise their operations.


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