Bitcoin Hashrate Surges 300% Since the Low Hit on China Clampdown
The Bitcoin network’s hashrate has recovered impressively after it plummeted after China’s cryptocurrency mining crackdown weeks ago. As per statistics from analytics company CryptoQuant, the Bitcoin hashrate has now surpassed 150 Exahashes, or one quintillion hashes per second.
On August 24, the metrics provider recorded a hashrate of 152 EH/s, which has nearly tripled from its low of 52 EH/s on June 28 this year. The restoration of the BTC hashrate indicates that the network is considerably more safe and difficult to assault.
As per Bitinfocharts, the average Bitcoin hashrate — the quantum of processing power in the network — reached a historical peak of 197.6 EH/s on May 13. Within the next six weeks or so, it fell by over 65% as mining rigs throughout China were turned off for the “great miner relocation.”
The measure is already nearing early June levels, and if the trend holds, it may set a fresh record high in the forthcoming months. Back in May, there were hints of hashrate moving out of China. It’s tough to find information on the relocation:
Cambridge University’s well-researched “mining map” has not been revised since April, when it claimed that China accounted for 65% of the hashrate. Evaluating hashrate data by mining pool is also incorrect, as most pools combine hash power from physical infrastructure with miners from all over the globe sharing computing power.
Because hashrate has now rebounded, this would imply that the miner exodus is nearly done. This has led to a rise in difficulty, with the most recent increase of approximately 7% happening on August 13. Another one is expected any day now, which will imply greater computational expenses for miners as more previously China-based businesses return to chase for blocks. The latest estimate calls for a 12.37% rise in Bitcoin difficulty.
Bitcoin hashrate recovered ~67% of its earlier exodus
Didn’t die then, didn’t die now, regulatory arbitrage 👍 pic.twitter.com/Abe7VYbitW
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) August 24, 2021
While relocating in June and July, mining operations were down and miners having facilities in the United States were able to earn more owing to the reduced hashrate (difficulty). A few days before, Riot Blockchain, a US miner, reported record income from BTC (Bitcoin) mining for the second quarter.