Bitcoin Hashrate Recovers As Miners Come Back Online
Bitcoin hashrate has recovered remarkably, returning to June levels after it crashed following China’s punitive clampdown on mining earlier this year. It was reported that the hashrate tripled on Wednesday. This recovery means that miners are gradually coming back online, which is good news for the cryptocurrency ecosystem.
Bitcoin Hashrate Triples to 152 Exahashes
CryptoQuant reports that the hashrate for the famous coin rose to 152 Exahashes, also known as one quintillion hashes per second. The current hashrate triples that of 52 Exahashes recorded in June where the hashrate bottoms out. The recent jump in mining further indicates that the security system in the bitcoin network is watertight and harder for cyber attackers to manipulate.
Hashrate Could hit All-Time High In a Couple of Months
Despite the massive jump in the amount of Bitcoin computing power, it’s still below the all-time high of 197.6 Exahashes recorded in May, this year. However, following China’s crackdown on mining rigs, the metric fell for six consecutive weeks, slumping by almost 65%. Fortunately, the mining power is now approaching June levels. Experts anticipate that if it continues like this, it could hit a record-high, eclipsing 197.6 Exahashes.
Around May, there were pieces of evidence that hashrate was migrating from China to North America. Although the United States has its share of the hashrate, a significant portion of mining pools is still in China. However, the F2 pool reported in 2020 that Chinese miners represented the minority of mining, suggesting that mining was shifting away from the most populous nation.
In that span, United States mining pool Foundry broke into the top five mining pools globally, representing a 7.6% share of the hashrate. In addition, China’s hashing power was 65%, but it slumped to 55% earlier this year. This is evidence that the shift is authentic.
Although China’s AntPool still chunks up the majority shares in total hashrate, it could slump further if China implements stricter regulations on crypto mining. This could signal the exodus of hashrate and several mining pools. Now that the hashrate is coming back, it signifies that miner migration is tad complete.
However, as more China-based operations return, computational costs will be higher, and this will result in an increased difficulty. Currently, the difficulty level is 12.3%. Before that, it was 7% recorded on August 13.
Thanks to the slow migrating operations and lower difficulty in June, miners in the United States and other North American countries raked in massive profits. Riot Blockchain, a mining firm, recorded a huge revenue from BTC mining during that period.
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