For years, China was the undisputed epicenter of global Bitcoin mining, accounting for over half of the world's hash rate. Despite a nationwide crackdown in 2021, the story of how China mined Bitcoin remains a crucial chapter in cryptocurrency history and continues to evolve. So, how did and does China mine Bitcoin? The process combines technological prowess, geographic strategy, and a complex relationship with regulatory policies.

The foundation of China's mining dominance was built on three key pillars: cheap electricity, massive manufacturing capability, and concentrated mining pools. Regions with surplus hydroelectric power, like Sichuan and Yunnan during the rainy season, offered incredibly low-cost electricity. Miners would migrate seasonally to these provinces to capitalize on the cheap, renewable energy. In the drier months, operations often moved to coal-rich regions like Xinjiang and Inner Mongolia, where power was still inexpensive compared to global standards. This strategic mobility minimized the single largest operational cost: energy.

Secondly, China housed the world's leading manufacturers of mining hardware, notably Bitmain (producing Antminers). This gave Chinese miners direct access to the latest and most efficient Application-Specific Integrated Circuit (ASIC) miners, often before international competitors. Proximity to supply chains reduced costs and logistics hurdles, creating a significant competitive advantage.

Finally, the concept of mining pools was perfected in China. Individual miners would combine their computational power into large pools, such as F2Pool and Antpool, to increase the chances of successfully mining a block and receiving rewards. These pools distributed earnings proportionally, allowing even small-scale miners to participate. At its peak, Chinese pools controlled a substantial majority of the network's hash rate.

The landscape shifted dramatically in May 2021 when Chinese authorities declared a sweeping crackdown on cryptocurrency mining, citing financial risks and excessive energy consumption. This policy led to the abrupt shutdown of many large-scale mining farms. The immediate effect was a historic drop in the global Bitcoin hash rate and a mass migration of miners seeking new homes in North America, Central Asia, and elsewhere.

However, to ask "how does China mine Bitcoin today?" yields a more nuanced answer. The outright large-scale, industrial mining farms that operated openly are largely gone. Yet, mining has not disappeared entirely. Reports suggest that smaller, more covert operations continue. These may involve off-grid power sources, behind-the-meter arrangements with local power generators, or disguised operations in remote areas. Some miners have also relocated to neighboring countries or special administrative regions while maintaining business connections in mainland China.

Furthermore, China's role in the mining ecosystem remains indirect but vital. Chinese companies still dominate the manufacturing of mining hardware, sold globally. Chinese capital and expertise often fund and operate mines overseas. The Chinese crypto community also remains active in trading and investing, demonstrating a continued, albeit transformed, engagement with the Bitcoin network.

In conclusion, China mined Bitcoin through a powerful synergy of cheap energy, hardware dominance, and collective mining strategies, achieving unprecedented scale. While the era of overt domestic industrial mining has ended due to regulatory pressures, its legacy shapes the global industry. The knowledge, equipment, and pool infrastructure developed in China continue to underpin Bitcoin mining worldwide, proving that while geography can shift, the foundational engineering and economic principles pioneered there have a lasting impact.