Bitcoin hashrate appears to be on an upward trajectory after falling 50% amid intense crackdowns against cryptocurrency mining by Chinese authorities.
The crypto data provider, CoinMetrics, explained:
“China’s sudden crackdown on mining in Q2 2021 left miners with no choice but to shut down operations and move elsewhere. Bitcoin hashrate has dropped 50% as a result, but appears to be recovering. ”
The hashrate function mainly measures the processing power of the BTC network. It allows computers to process and resolve issues that would allow transactions to be approved and confirmed over the network.
Chinese authorities’ hostile stance against Bitcoin mining
BTC mining continues to be rejected and undesirable on Chinese soil. For example, Anhui, a province in eastern China, became the last region to shut down all crypto mining activities in the middle of this month, citing a serious power shortage.
In June, Chinese authorities shut down BTC’s Sichuan mining sites. As a result, more than 90% of China’s crypto mining capacity was impaired.
“How much impact did China’s BTC mining crackdown really have on hash rate and lockout times? The short answer – a lot! The hash rate dropped 45% from an average of 163.93TH/s to 89.52TH/s in July. Bitcoin lockout times also passed the 20-minute mark for the first time – reaching 23 minutes! ”
Bitcoin hashrate appears to rebound as Bitcoin mining shifts from east to west as the US emerges as the biggest beneficiary.
For example, the share of the hashrate in the United States soared from just over 4% to 16.8%. On the other hand, Kazakhstan, Russia and Iran are also getting a share of the Bitcoin mining pie.
The BTC is moving into strong hands as its supply shock is at levels around the $50 – $60,000 range. The main cryptocurrency remains to be seen if a rebound in hashrate continues a positive trend.