In a surprising twist that upends prevailing beliefs, Daniel Batten, an analyst specializing in Bitcoin's environmental impact, has unveiled research indicating that Bitcoin mining was never officially banned in China. Contrary to widespread assumptions, what was widely reported as a sweeping ban was, in fact, a temporary suspension, with mining operations now largely back in action across the nation.

Batten's investigation reveals that China's share of the global Bitcoin hashrate, which measures the computational power dedicated to mining and processing Bitcoin transactions, currently stands at around 15%. This revelation starkly contrasts with the dominant narrative that emerged in May 2021, when multiple major news outlets reported a blanket crackdown on cryptocurrency activities, including mining, by the Chinese government.

According to Batten, the decline in network hashrate, plummeting from 179.2 EH/s to 87.7 EH/s—a staggering 51.1% reduction—was only temporary and was mistakenly interpreted as a permanent ban. Drawing an analogy, Batten likened the situation to a student temporarily suspended from school, emphasizing that absence does not equate to expulsion.

Further investigation corroborates Batten's findings. Reports following the so-called ban indicated that many mining operations continued uninterrupted, as documented by CNBC and NBC. By December 2021, mining activity had rebounded to represent 19.1% of the global hashrate, as per Cambridge data, signaling a notable recovery.

Batten underscores that small-scale, environmentally conscious mining operations have been welcomed by local provincial governments, particularly when they contribute to local energy solutions without seeking to bypass capital controls. In regions like Inner Mongolia, characterized as the "Texas of China," where renewable energy potential is abundant, authorities actively support such initiatives.

Moreover, Batten highlights a significant shift towards cleaner, renewable energy sources in Bitcoin mining, with a notable reduction in coal-based operations. This aligns with China's broader commitment to achieving carbon neutrality by 2060, suggesting that the purported ban on mining was part of a larger strategy to mitigate energy-intensive industries' environmental impact.

However, Batten asserts that Western media outlets have largely misinterpreted these developments, perpetuating a false narrative about China's stance on Bitcoin mining. Supporting this view, Jaran Mellerud from Hashlabs emphasized that several major mining operations continue to operate in China, underscoring the local government's tolerance due to the economic activity they generate.

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