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The Bitcoin hashrate has reached highs just before the China ban and the market crash. This happens as miners moved in large numbers setting up new bases in North America.
As per the latest report from CNBC, Bitcoin mining has completely recovered from the China ban earlier this year in May 2021. China’s decision to impose a sweeping ban on Bitcoin mining operations took half of the world’s miners offline overnight.
This happened as China was the epicenter of all the Bitcoin mining activities in the world. It had the lion’s share controlling 65-75% of all the Bitcoin mining activities. However, soon after Beijing’s crackdown and ban in May 2021, 50% of the BTC hashrate dropped off the global network. The Bitcoin hashrate represents the computing power of all miners in the Bitcoin blockchain network.
But this quick recovery in the Bitcoin mining operations can be understood from the BTC hashrate. The data from Blockchain.com shows that the BTC hashrate has once again reached the May 2021 levels. From the lows of July, the Bitcoin hashrate is up 113% back at 180m TH/s.
Experts View on Bitcoin Mining Recovery after Crash in 2021
Kevin Zhang of digital currency company Foundry said:
“Bitcoin withstood a nation-state attack of China actually banning mining, and the network shrugged it off”.
Bitcoin mining engineer Brandon Arvanaghi, who now runs Meow, said that China’s ban on bitcoin mining was a clear “buy” signal. Arvanaghi further said that the biggest takeaway from this event is that Bitcoin has successfully managed to survive its biggest stress test in a very short period of time.
“The bitcoin network withstood an attack by a major superpower and emerged stronger than ever six short months later. How can anyone ever argue, ‘But what if nations ban it?’ again?” added he.
Interestingly, post the China crackdown, a lot of Bitcoin mining activity has moved to North America. Texas has emerged as an attractive destination for Bitcoin miners as the US State continues to offer attractive incentives.
With a lot of Bitcoin miners flocking to Texas, the demand for electricity will likely surge exponentially. Adrian Shelley, director of the Texas office of the consumer advocacy and lobbying group Public Citizen told Bloomberg:
“There’s nobody looking at the scale of potential investment in crypto and its energy demand over the next couple of years and trying to account for that in some sort of strategic plan”.
While Texas has been rolling out a red carpet for Bitcoin miners, there’s a serious growth of mining infrastructure happening in other parts of the United States as well.
Will Bitcoin Price Follow the BTC Hashrate?
Well, if we see, the BTC price has actually followed the Bitcoin hashrate. From the lows of July 2021, the BTC price gained more than 100% hitting an all-time high of $69,000 in November. However, the BTC price has corrected more than 30% since then and is currently struggling under its 200-day moving average of $50,000.