Bitcoin hash rate increases three times since June 28 in recovery from China syndrome

The network is much more secure and harder to attack

  • August 24 had reported a hash rate of 152 EH/s, which has tripled from June 28 at 52 EH/s.
  • The hash rate could hit an all-time high in the next couple of months
  • The hash rate has since stabilized, and it means that migration is almost complete

Post-China’s crackdown on mining activities, the hash rate has now recovered to the early June levels. The hash rate has now reached early June levels indicating that miners are back online after the China syndrome. The crypto mining rate had crashed after the massive crackdown by Chinese authorities. However, the recovery was even more remarkable. The Bitcoin hash rate has now topped 150 Exahashes, or one quintillion hashes, per second, according to data from analytics provider CryptoQuant.

The Metrics Provider on August 24 had reported a hash rate of 152 EH/s which has tripled since it bottomed out this year on June 28 at 52 EH/s.

BTC hashrate – CryptoQuant

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The return of the BTC hash rates to earlier levels is another indication that the network is much more secure and harder to attack. According to data provided by Bitinfocharts, Bitcoin Hashrate, which corresponds to the computing power in the network, reached an all-time high of 197.6 EH/s on May 13. However, immediately afterwards, the crackdown on Bitcoins miners started in China. The next six weeks saw a steep fall as 65% of the mining rigs across China were powered down for the “great miner migration”.

The Hash rate today has reached early June levels

The metrics today have reached early June levels, and if the trend continues, we may see the hash rate hitting an all-time high in the next couple of months. Prominent cryptocurrency media outlets have been reporting that a great migration of Bitcoin miners has been happening since the crackdown by Chinese authorities. Finer details of the mining data are difficult to obtain. Cambridge University’s well-sourced “mining map” has not been updated since April, when it reported 65% of the hash rate residing in China.

Measuring the hash rate data is not very accurate since numerous pools are a mishmash of hash power from physical facilities and miners from all around the world pooling computing resources.

Migration is almost complete

The hash rate has since stabilized, and it means that migration is almost complete. This has led to the increase in difficulty, with the last rise of around 7% occurring on August 13. This means higher computational costs for miners as more of the formerly China-based operations come back online to compete for blocks. The current estimate is for a 12.37% difficulty increase.

Immediately after the clampdown in China in June and July, when the mining operations were offline, miners operating in other countries like the US could rake in bigger profits because of the lower difficulty.

Source: https://www.thecoinrepublic.com/2021/08/26/bitcoin-hash-rate-increases-three-times-since-june-28-in-recovery-from-china-syndrome/