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Earlier this year, it was reported that the Chinese government started a crackdown on Bitcoin mining facilities in the country. As a result of the crackdown, a large number of crypto miners had to leave China and move to other crypto-friendly countries.
The locations that saw the most influx of miners were North America and Central Asia. Moving to different countries helped the miners in mining crypto in an eco-friendly way. Even though a large number of miners left China, some were unable to travel because of COVID-19 travel restrictions and other reasons.
According to reports, the miners left in China are still operating under the radar. Let’s find out more about these operations.
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How Are the Miners Operating?
Mining crypto takes a whole lot of power and was allegedly harming the environment, which is one of several reasons for China’s crypto crackdown. Miners who moved to other countries have been able to explore other sources of energy that are more environment-friendly.
However, the miners left behind due to supply chain issues, pandemic travel restrictions and more are still operating in China but are undetectable at the moment.
As per reports, the miners working in stealth are using off-grid power sources. In order to continue their work and earn a livelihood, these miners are operating based on the combination of:
- Grid electricity
- Hydro-power
- Internet protocol address manipulation
The miners using hydro power have established a system that gets power from dams located across the provinces of Yunnan and Sichuan. These dams are less likely to grab the attention of the government, as they are somewhat unnoticeable.
Powering up from hydro power works best during the rainy season that starts in May and ends in fall. The miners have reportedly constructed their infrastructure that makes their equipment and the power from the dams quite compatible.
According to a report by cyber security firm Qihoo 360, crypto mining has been established quite a lot even though it has been banned all over the country. Miners often turn to mining pools to hide their operations and currently there are 109,000 active mining IP addresses on a daily basis.
The overseas mining pools help the data centers in China to resolve technical issues and help prevent the miners from being detected.
What Should you Know as Crypto Investor or Trader?
At the moment, the Chinese miners are able to operate in a stealth mode. However, will the hidden mining methods and sources flourish or not is yet to be seen.
However, the dedication of miners to finding a suitable source for continuing mining operations speaks volumes about the significance and popularity of digital assets.
If you are also looking to purchase digital currencies such as Bitcoin or Ethereum, make sure you choose one of the lowest fee Bitcoin exchanges.
As a new crypto investor, if you want to buy BTC or ETH, you can click of SwissBorg or Kraken (U.S. citizens).
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