Chinese miners use tactics such as running their machines with clandestine energy sources to evade government restrictions. While some operators emigrate to seek new opportunities, those staying in China get around on their own to continue doing their activity.
The Chinese government restricted the development of cryptocurrency mining in the Asian country, but they did not fully achieve their objective. They have found it difficult to impose the ban since miners continue operating while hiding from the tracking by the authorities.
The mining farms run their machines with electrical power methods disconnected from the main supply chain. Besides, they hide their Internet connections to prevent regulatory agencies from detecting their crypto data.
Miners Continue Doing Their Activity Undercover in China
The government has struggled to reduce the influence and mining of cryptocurrencies, but the activity has not stopped. Miners have to constantly face the intention by the authorities to eliminate data centers that gather computing power to interact on the blockchain.
Those operators conduct their business with tactics to evade the restrictions imposed by the Chinese government. To continue operating, miners search for methods that allow them to obtain power without the Chinese authorities detecting them.
Those participating in the mining of cryptocurrencies use underground energy sources to avoid drawing attention. For example, some use hydroelectric generators, taking advantage of the flow of dams in remote places such as Sichuan and Yunnan.
Chinese miners perform IP address diversions through different virtual private networks (VPNs). In that way, they obfuscate the traffic from data centers and avoid being under government surveillance.
Miners from other parts of the world support part of the undercover operations, helping themselves with mining pools. In that way, those still in China can hide the processed blocks by not affixing a traceable identification mark to them.
The Persistence of Cryptocurrency Miners Is Evident
The Chinese government has hindered the development of the cryptocurrency industry considerably in the country. However, miners continue struggling to keep their farms alive. Many have left China behind to seek new opportunities abroad, but those who stay must get along themselves.
The authorities are still detecting thousands of IP addresses through which data from the blockchain transits. The Chinese cybersecurity firm Qihoo 360, estimates that more than 100,000 are currently active, getting past bans.
Considering the scenario where those miners continue operating, the persistence of operators is evident. However, the government continues looking for a way to strengthen its ban on cryptocurrencies, alleging the high energy consumption levels.
Even though the Chinese government has tightened the bans on cryptocurrencies, they have proved unbeatable. The country has seriously affected mining in the territory but has been unable to cause its elimination.
The relevant role that cryptocurrencies play in the economy is increasingly evident; governments cannot overlook this. Many countries have tightened the regulations on those assets and even banned their use. They have also alleged that the emissions of CO2 due to cryptocurrency mining harm the environment.
By Alexander Salazar
