The global hash rate will soon reach a record high, which can be attributed to the cryptocurrency ban in China, because the gap left by Chinese miners is being filled in new countries. Bitcoin’s hash rate moves according to Blockchain.com now at 172 million terahashes per second. This value was already reached once in May 2021. Exactly in these days the Bitcoin network is reaching its full computing power again.
This date is no coincidence: it was during this month that China cracked down on some illegal mining farms. The Chinese regime justified this with the negative environmental impact of the energy-guzzling technology. The ban was soon implemented in various regions of the country. However, it was the Chinese energy policy that made the rise of the mega-country as a bitcoin mining giant possible in the first place.
Bitcoin mining race winner: Texas, Kazakhstan, Canada
But especially for countries with cheaper energy sources, the crypto ban in China was positive news, including Iceland, Norway, Canada, but also the USA. The position of the market leader in the field of mining is currently again taken by the USA. The Cambridge Center for Alternative Finance was able to find out through data collection that a large part of Bitcoin mining has been relocated to the USA.
But what is the reason for the increase in the hash rate? The mining company Bitfury explains that new types of plants have been put into operation in the USA, which are hardly comparable with the largely inefficient plants in China, whose continued operation in other countries would have made no sense. The Chinese ban led to a dump in cryptocurrencies, but luckily the market was able to recover in the fall. Against the background of increasing demand, active Bitcoin miners were able to benefit from the lower number of available production capacities.
Still, the overall production rate has not returned to its original level, even if the hash rate figures suggest otherwise. The production rate could be much higher if the Chinese government had decided otherwise. Sam Doctor, Chief Strategy Officer at the digital asset specialist Bitooda, believes hash rates between 180 million and 190 million terahashes per second are realistic at the end of the year. It remains to be seen whether mining will continue to be as lucrative and how China will behave.
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Bitcoin hashrate: is there a new mining boom ahead?