The Bitcoin hashrate returns to an all-time high, recovering from the mining crisis. The Bitcoin hashrate has recovered completely in six months after China banned industrial mining of cryptocurrency this summer.
After China banned industrial mining of Bitcoin in the summer of 2021, the cryptocurrency fell by about 75% from about 190 exahashes a second (EH/s) to a low of 58 EH/s on June 27. However, the hashrate has continued to increase since then, and now the Bitcoin network is again operating at 190 EH/s, according to Trustnodes.
Despite the huge fall in hashrate over the summer, the network continued to operate mostly as usual. Thus, the network has passed a rigorous test of Bitcoin's ability to perform when the hardware is under significant stress.
It should be kept in mind that a speed of six months for a full recovery is what one would expect, as it was a one-off event affecting only one country. However, China could have contained about 3/4 of production capacity, with it now thought to have close to zero. At the moment, it is believed that industrial miners have moved all their operations to other countries.
The event also affected the Bitcoin price in the summer, as miners likely needed new capital to fund the move of mining farms. This provoked them to sell the cryptocurrency, which had an impact on the cryptocurrency course. However, the impact on Bitcoin of the once-dominant China is now irrelevant as the cryptocurrency continues to thrive without it in just six months after the shock.
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