The Bitcoin [BTC] Hashrate has gained by more than 23% in the last 24 hours, climbing to 179.41 EH/sec since its record high on May 2021. This comes at a time when the king coin’s price has undergone a sharp price correction of more than 17% in a span of 24 hours, in contrast to the rising hash rate.
Zooming out, more than 54% of bitcoin’s collective computing power, went into a nosedive in the period between the month of June-July owing to China’s clampdown on the mining rigs. Since then, the BTC hash rate has risen by a whopping 163% from its all-time low of 68 EH/sec, five months ago.
The mining hash rate is an important metric on the security aspect. This is due to the fact that the hashing represents the computational power in the network, so the greater is the difficulty level of the network, the higher the security and its overall resistance against malicious attacks. Although BTC’s exact hashing power is not known, it is possible to estimate it from the number of blocks being created and the difficulty level of the current block.
Bitcoin [BTC] hashrate since China’s ban
The Bitcoin network hash rate is nearing its complete recovery since China’s ban this year. The communist nation which initially hosted more than 70% of the total BTC hash power, went on a massive crackdown on the mining rigs, forcing a considerable amount of miners to go offline, plummeting the hash rate to its all-time low in July. Months later the metric completely recovered and held onto its momentum.
According to a recently published report by Kraken Intelligence, following the ban, miners relocated to friendlier nations and started getting back online, which gradually increased the hash capacity and the network’s mining difficulty also started adjusting upwards. Reading along with the same, the report further noted,
“On-chain data shows that computational power deployed to the network is likely to continue heading higher and might hit a new all-time high in early December. While much-expected hash rate to hit an all-time high at the tail-end of December, the network is now pacing to beat expectations amid an ongoing surge in demand from miners. Though the latest recovery in difficulty suggests miners have by and large completed their migration to overseas locations such as North America, Kazakhstan, and Russia after being prohibited from mining in China, it’s also a testament to the confidence in miners underpinning the network.”