Triggered by China’s campaign against the mining scene, the Bitcoin hash rate went down. But now improvement is in sight.
China’s restrictive approach has undoubtedly left its mark on the Bitcoin network. But now there are increasing signs that things are looking up again. An important indicator for this is the Bitcoin hash rate. Because one thing is clear: the higher the hash rate, the more secure the network is against external attacks.
Bitcoin inventor Satoshi Nakamoto has stipulated that the Bitcoin protocol adapts every 2,016 blocks so that the 10-minute average can be maintained when finding blocks. It always depends on the number of miners and the computing power on the blockchain at the time of the adjustment. China’s crackdown on Bitcoin mining has previously led to several disruptions in the BTC network. The miners were forced to shut down their computers and leave the region to continue their business. Accordingly, the hash rate and the mining difficulty also went into the basement.
Evidence of analysis data Moreover, at the height of the Chinese raids, the BTC network experienced the slowest block production in history and the miners lost a significant portion of their revenue. During this period, only 58 new Bitcoin blocks were mined, instead of 144 as originally planned. In addition, miner revenues fell from an all-time high of $ 70 million in May to $ 13 million in June. This corresponds to a decrease of more than 80 percent within one month.
Hash rate is currently again in a clear upward trend
But this trough now seems to have passed. Many miners have already pitched their tents in other, more crypto-friendly regions, such as Europe and the United States, to get back to business. In doing so, they have reduced China’s dominance in this area and made the Bitcoin network more decentralized. Whether Beijing is actually happy about this is another matter. In any case, the hash rate went up again. So far, the hash rate has doubled since the low point in June. Bitinfocharts data show that the network’s computing power has risen back to over 130 EH / s, an increase of 100 percent from the low of around 67 EH / s two months ago.
This also has an impact on the mining difficulty. In line with the increase in the hash rate, it has been climbing steadily, by 13 percent since last Wednesday alone. Judging by the current trend, this is by no means the end of the flagpole, even if it is still a long way to the high from May.