Hashrate is on a recovery path leading to the early June levels; this shows that China’s crackdown is past news and miners are coming back online. China’s crypto mining clampdown seen earlier in the year crashed the hashrate for the Bitcoin network but some remarkable improvements have started revealing themselves.
As of August 24, the Bitcoin hashrate had topped one quintillion hashes or 150 Exahashes per second according to information from CryptoQuant, a crypto analytics provider. CryptoQuant’s report revealed a hashrate of 152 EH/s which is three times the figures seen when it bottomed out earlier on in the year on June 28 to 52 EH/s.
Recovery Track Taking Shape
The BTC hashrate recovering is not only a sign of miner confidence in the network but also an indicator of a network with beefed up security that is harder to attack.
Bitinfocharts had reported on the highest average Bitcoin hashrate – the amount of computing power in the network – on May 13 which stood at 197.6 EH/s. The six weeks that followed this all-time high saw the figures slump by more than 65% as China powered down mining rigs across the nation for the ‘great miner migration.’
Some positivity is on the horizon with the metric getting closer to early June levels and if it continues with this pace, it will be only a couple of months before it hits a new all-time high.
Miner Migration Impacted Hashrate
A famed crypto trader and market analyst, Bitcoin Jack, tweeted about a 67% recovery of the Bitcoin hashrate from its earlier exodus.
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
Earlier on in the year, another crypto icon and co-founder of one of Bitcoin’s largest mining pools, F2Pool, Chun Wang, tweeted of a real shift in miners leaving the Chinese mining ecosystem.
Here at @f2pool_official, in April 2021, the first month in our 8 years of operation, we have seen more $BTC hashrate coming from outside of China than from the inside. The shifting is real. https://t.co/nf2gBy62re
— Chun, the Arctic Boy (@satofishi) May 3, 2021
No valid details have been published yet on the migration, with Cambridge Bitcoin Electricity Consumption Index (CBECI) not updating their well-sourced ‘mining map’ since April when figures showed China enjoying 65% of the hashrate.
With this in mind, it is somewhat inaccurate to measure hashrate data by mining pools because many pools are a combination of hash power from physical facilities, and miners across the globe bringing in computer resources for a common goal.
With a recovering hashrate, it might be true that miner migration is almost complete. This has caused a spike in Network Difficulty, with the last rise experienced on August 13 at approximately 7%. Miners in other nations other than China were able to bring in more profits when migrations were offline in June and July and the difficulty was lower.
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