Bitcoin Hash Rate Increases as Large Miners are Flocking Back Online
Due to restrictions in China, indigenous Bitcoin miners have been forced to relocate to crypto-friendly countries such as Canada, Kazakhstan, and the United States.
Many Chinese firms in the Bitcoin mining ecosystem have had to close their doors due to China’s strict crypto laws. Hash rates have dropped due to the unexpected departure of Bitcoin miners from the grid. In only about 21 days, the Bitcoin network’s hashing performance, or total processing power, decreased from an all-time high of 180 exahashes per second (EH/s) to 84 EH/s.
While the decline in hash rate was due to a decrease in the number of Chinese miners, Blockchain.com Explorer statistics show that mining difficulty has been rising exponentially since June 3.
Due to the return of these Chinese miners who have resumed working in other locations, the hash rate has almost increased by 21.38 percent since the decrease. Higher computing expenses arise from the resultant change in Bitcoin mining difficulty. The operational expenses of Bitcoin miners throughout the world will continue to rise as more previously China-based miners come back online.
Miners have been on the hunt for nations that offer both legislative certainty and reduced power prices, given the Chinese government’s early opposition.
Underneath the guise of protecting consumers from high-risk investments, Chinese authorities have compelled crypto companies to either drastically reduce their crypto portfolio offerings or relocate overseas.
China generated almost 75.53 percent of the global Bitcoin hash rate at its peak in September 2019, and had been steadily declining even before the mining ban was enforced. While China now contributes 46.04 percent of the global hash rate, the The Us has increased its share to about 16.85 percent.
By providing a home for migratory Chinese miners, Russia, Kazakhstan, and Canada have witnessed increased interest in cryptocurrency. Many analysts think that China’s mining dominance has been destroyed, signaling a good step toward decentralization of the cryptocurrency industry.
Source: Cointelegraph news