The relocation of Chinese miners, along with new mining equipment coming on stream, helped the Bitcoin hashrate to recover from the crackdown in China.
At the height of China’s crackdown on Bitcoin miners and trading activities within its jurisdiction last year, Bitcoin mining hashrate dropped to the lowest level of 58.4 million terahashes per second as many miners were withdrawn of the market due to strict political anti-encryption system.
Bitcoin hashrate hits new ATH
However, new data from the glassnode revealed that the Bitcoin hashrate has fully recovered from last year’s lows and also set a new all-time high just two days after the start of the year. According to the data, the Bitcoin hashrate now peaks at 208 million terahashes per second.
Bitcoin hashrate refers to the amount of computing power devoted to minting new currencies, securing and verifying transactions on the network of the main digital asset.
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A higher hashrate generally means there are more miners in space looking to help protect the network; therefore, some analysts tend to see this as a bullish signal for the industry.
Bitfury says mining relocation is not responsible for growth
Talking about how the industry was able to eliminate the negatives of the previous year, a leading cryptocurrency mining company, Bitfury, in a statement to the FT, stated that “the recovery is attributable to the new generation equipment that is online, not the relocation of equipment from China”.
This means that while the relocation of many of the miners to new locations such as the United States or even Russia played an important role in keeping the industry afloat during the Chinese crackdown, the reclaiming of space may also be strongly linked to mining companies in Bitcoin in an attempt to broaden your horizon.
Hut 8 Mining Corp’s chief technology officer Jason Zaluski further supports this view by saying that China’s ban has only generated “a geographic shift.”
See too: Two more countries will adopt Bitcoin in 2022, says Nayib Bukele
For example, while some Chinese miners are still struggling to get cheap power for their data centers, Marathon Digital, a US-based mining company, revealed that its mining activities could reach a new record in the middle of this year, when all of its Bitcoin miners were deployed in Texas.
At the time of this publication, the data available in the CryptoSlate show that the asset has lost more than 7% of its value in the last seven days.