Bitcoin’s hashrate has recovered quickly from China

Bitcoin mining has fully recovered after the Chinese government took tough action against all cryptocurrency mining activities earlier this year, effectively shutting down more than half of the world’s miners overnight. … Before the crackdown, China accounted for about 75 percent of the “average monthly hash rate”.

a phrase used to calculate the processing power required to mine Bitcoin. The data now shows that the network hashrate has grown by about 113 percent in the past five months, successfully breaking through the sharp drop seen after Chinese miners were forced to shut down altogether. or move to other countries.

According to a CNBC report, the hash rate, which refers to the cumulative number of terahashes per second (TH / s), peaked at around 180 million TH / s on May 14, but fell to 86 million TH / s on July 4. , as of last week, the average returned to 182.83 million TH / s. The ban prompted miners to relocate their hardware to other countries such as Russia and the United States.

In Kazakhstan, a country close to China, it even led to a series of power outages due to bitcoin mining, which requires a lot of electricity. The country is preparing to build a new nuclear power plant to solve this problem. Bitcoin weathered a nation-state attack in China that banned mining, and the network shrugged, “Kevin Zhang, vice president of business development at popular cryptocurrency mining company Foundry, told CNBC.

“The Bitcoin network has withstood the attack of a great superpower and in six months is stronger than ever. How can you argue: “What if the peoples forbid it?” Again? “He said.

Zhang said such a quick recovery was possible as the US made sure to lay the foundation for mining to flourish. “There is a huge appetite for growth, infrastructure and the use of idle energy,” he said.

Cryptocurrency mining consumes a large amount of energy, both due to the electricity consumed by specialized computer equipment necessary to solve the mathematical problems that produce currency, and due to the energy required to cool machines and prevent them from overheating.

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