In a surprising disclosure challenging common beliefs, Bitcoin environmental analyst Daniel Batten revealed that the supposed ban on BTC mining in China was never officially imposed. According to Batten's findings, contrary to widespread reports, the so-called ban was a temporary suspension, and mining activities have largely resumed across the country.

Batten's report points out that China's hashrate, a measure of the computational power used in Bitcoin mining, currently contributes approximately 15% to the global total. This contradicts the prevailing narrative that emerged in May 2021, when various major news outlets reported a comprehensive crackdown on cryptocurrency transactions and mining operations by the Chinese government.

Batten argues that the decline in network hashrate, which dropped from 179.2 EH/s to 87.7 EH/s, a 51.1% reduction, was temporary and misunderstood as a definitive ban. He illustrated the situation in China using an analogy, likening it to a student being temporarily suspended from school rather than expelled.

Further investigation supports Batten's claim. Reports following the alleged ban indicated that many miners continued operations unaffected. Both CNBC and NBC reported ongoing mining activities within China. Additionally, by December 2021, mining activity had rebounded to 19.1% of the global hashrate, according to Cambridge data, indicating a significant recovery.

Innovative uses of Bitcoin mining in China reportedly include tapping into wasted renewable energy and recycling heat, suggesting a more nuanced approach to Bitcoin mining than previously assumed. Batten noted that local provincial governments often actively support Bitcoin mining, particularly small-scale operations that contribute to local energy solutions without circumventing capital controls.

Moreover, there is reportedly no longer any off-grid coal-based mining. Batten revealed that most mining operations are hydro-based, much of which is sub-1MW, aligning with China's goal of achieving carbon neutrality by 2060. This suggests that the supposed Bitcoin mining ban is part of a broader effort to reduce the energy intensity of high-consumption industries.

Batten contends that Western media outlets have largely misreported these dynamics, perpetuating a false narrative about China's stance on Bitcoin mining, which he aims to correct. Supporting this view, Jaran Mellerud from Hashlabs noted that several major miners still operate in China, as local governments need economic activity.

These findings not only challenge the mainstream media's portrayal of China's policies but also underscore a broader pattern of misinterpretation and sensationalism in reporting on Bitcoin mining's legal and regulatory status worldwide.

At the time of reporting, BTC was trading at $71,227, marking a 0.2% increase in the last 24 hours.