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Bitcoin hashrate recovers from China shock

The bitcoin network’s hashrate has risen sharply since the slump caused by China’s crackdown on crypto mining earlier this year.

The Bitcoin hashrate is now over 150 exahashes per second, according to data from the analysis website CryptoQuant.

On August 24, the website reported a hashrate of 152 EH / s. This has tripled this value since its low of 52 EH / s on June 28th.

BTC hashrate – CryptoQuant

The recovery of the BTC hashrate means that the network is now more secure and more difficult to attack.

The average Bitcoin hashrate, i.e. the computing power in the network, reached an all-time high of 197.6 EH / s on May 13, according to data from Bitinfocharts. In the six weeks that followed, the hashrate collapsed by more than 65 percent, as mining plants across China had to cease operations and thus ushered in the “great miner migration”.

Now the value is climbing to levels from the beginning of June and if the trend continues, there could be a new all-time high in the next few months.

At the beginning of May, Cointelegraph reported that the hashrate is demonstrably moving away from China. More precise data on this migration are difficult to collect: The “mining map” of Cambridge University has not been updated since April. Back then, China still accounted for 65 percent of the hashrate.

If you measure the hashrate data according to mining pools, you only get imprecise numbers. Because many pools are a mix of hash power from physical systems and miners from all over the world who pool their computing power.

In this context: Big miners back online: Bitcoin hashrate is recovering

Since the hashrate has now recovered, it could mean that the miner migration has now fully taken place. This led to an increase in the difficulty, which rose by around 7 percent on August 13th. The next adjustment should take place soon and will result in higher costs for miners. In the meantime, companies that were formerly active in China are coming back online and trying to find the next block. It is currently estimated that the next time the difficulty will increase by 12.37 percent.

While miners were offline in June and July, miners who were already active in other countries with the United States were able to make greater profits because the difficulty was lower.

This week, Cointelegraph reported that US mining company Riot Blockchain reported record sales from BTC mining for the second quarter.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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