Bitcoin hash rate is 4% from hitting pre-ban levels in China

Bitcoin hash rate is 4% from hitting pre-ban levels in China

Key facts:
  • The hash rate is estimated to soon equal and exceed the pre-ban numbers.

  • Bitcoin price faces a dip, but even so the hash rate continues on its uptrend.

Simply unstoppable. Bitcoin’s hash rate is already about to return to levels seen before the Chinese government onslaught against mining, according to estimates from blockchain analytics firm Glassnode.

According to graphics of the company, the hash rate it is only 4 percentage points away from reaching the levels seen in the first days of May, when it reached an all-time high (ATH) of 197.8 exahashes per second (EH / s).

At the close of December 6, the hash rate of the first cryptocurrency is about 188.3 EH / s, a clear recovery of the industry and that point to clear estimates: match and exceed the previous mark. This, it seems, is imminent and could indicate a growth in the number of miners connected to the network..

Bitcoin hash rate is 4% from hitting pre-ban levels in China
The hash rate practically recovered from the blow delivered by China / Source: Glassnode.

Hash ratey BTC price

As is usual, the hash rate follows the price path of the first cryptocurrency. After the bans on the industry in China, which forced the disconnection and migration of miners, consuming their hash rate; the price of BTC was also seen in the red. However, as one recovered, the other copied him.

In fact, and as reported by CriptoNoticias in October, the hash rate it was back to its May levels and pointed to a new all-time high. That, when BTC marked another ATH, of $ 66,000.

While the current Glassnode chart shows that BTC faces a dip, it is also true that the hash rate had a significant rebound, which brought it close to its May highs again. Now, it cannot be said exactly whether a rise in price may come, but if the behavior of previous months is fulfilled, it could be an indicator of a future and possible upward trend.

And, furthermore, something that hints at the growth in the hash rate is that mining BTC is quite profitable, even with low prices. It is to know that miners connect when work gives money, so a hash rate on the rise, suggests more miners operating and monetizing.

Remembering the attack by the Chinese government

It was mid-May when the Chinese government decided to extend its attack against bitcoin and the other cryptocurrencies on the market. All of this led to a ban on mining.

As a sign of the impact, at that time the hash rate plummeted to all-time lows: the computing capacity to mine cryptocurrencies was 61 EH / s. Mining was at a critical point.

The reasons? The alleged excessive use of energy to sustain activity, especially in regions where electricity is scarce. Also, the alleged environmental impact that cryptocurrency mining has on the world.

From that moment on, an exodus of miners occurred. Thousands of machines and people went to nearby borders, like Kazakhstan. Others went to other more distant lands, such as the United States.

China, which had the highest hash rate, was quickly displaced by its North American rival, which welcomed the miners, giving them clear spaces and rules that expanded the industry.

It is so much that, according to what is reviewed by CriptoNoticias, the US is the country with the highest hash rate in the world, with 30%, followed closely by Kazakhstan, with 18%. Russia and Canada are other countries that also pioneered mining.

Since then, an activity that was located practically in one place, has risen 93% from the lows seen in June and has moved to other latitudes, making mining global. An essential operation for the permanence of the market’s leading cryptocurrency.

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