Bitcoin Hashrate Sets A New All-Time High, Recovery Comes As Miners Relocate

• As 2022 begins, the Bitcoin hashrate recovers from China’s Crackdown, miners relocating from China being one of the factors.

• Some also believe that it’s not just about miners relocating but majorly about miners widening up and shifting equipment online.

• The Bitcoin hashrate is now at 208 million terahashes per second, setting a new all-time high, which grew from its down at the time of Cracking, which was 58.4 million terahashes per second.

The beginning of new mining equipment shifting online and miners relocating from China have majorly helped Bitcoin’s hashrate to recover from the loss of China’s Crackdown. When China’s Crackdown on trading activities and Bitcoin miners was at its peak in 2021, many Bitcoin miners were pulled out from the sector because of the stern anti-crypto policy, resulting in Bitcoin mining hashrate facing a new all-time low of about 58.4 million terahashes per second.

As per the data from some blockchain data and intelligence providers, the hashrate of Bitcoin has now completely recovered from the downs of the previous year and has surpassed previous records to set a new all-time high right at the beginning of 2022. The data revealed that the hashrate of Bitcoin has reached an all-time high of about 208 million terahashes per second.

What is Hashrate?

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The Bitcoin hashrate mainly points to the computational power devoted to verifying transactions on the network, minting new coins, and the security of the cryptocurrency. For a better understanding, generally, a higher hashrate indicates that there are many miners in the cryptocurrency ecosystem that look forward to helping in securing the network and vice-versa. Also, some researchers and analysts believe that having a higher hashrate might be a bullish pointer for crypto in the industry.

Did Miner Relocation Actually Help In Growth?

Bitfury, the ruling crypto mining organization, spoke with a daily newspaper firm, Financial Times, about the negative thoughts given by the industry last year. It said that the recovery results from “new-generation equipment coming online, not the relocation of equipment from China.” This signifies their view on the growth, explaining that the industry was held up in China’s Crackdown due to the relocation of miners to new geographic locations such as Russia or the United States, the recovery of the ecosystem might also majorly be because of Bitcoin miners making efforts to spread the horizon by shifting online.

China’s ban on cryptocurrency only led to a geographic shift and nothing more, the technology head at the Hut 8 Mining Corp, Jason Zaluski, expressed his views.

A mining firm based in the United States, Marathon Digital, announced that their activities concerning mining might reach an all-time high in six months of the year when all its miners of Bitcoin would have been established in Texas. At the same time, many miners from China still struggle to obtain energy at low prices to run their data centers.

The Current Status Of Bitcoin

Also, the data of Bitcoin of various platforms highlight that Bitcoin is down by 0.48% in the last 24 hours and is currently trading at $46,923.07 (at the time of writing). It has an average trading price of about $48,888.14 in the past seven days with an all-time high of $68,789.63, simultaneously acquiring 18.91 million circulating supply of the 21 million max supply cap. However, the 24-hour volume shows a positive sign as the volume of the past 24 hours is up by 17.92%, signaling more people are actively trading Bitcoin.