The Chinese language authorities took the historic step of banning any crypto mining operations based mostly within its borders earlier this year, resulting in a large exodus of hashing power from China to neighboring countries— from 168 exa hashes per second (EH/s) to just over 86 EH/s as of June 23, representing a drop of nearly 40%.
Prior to the ban, China held 65 percent of the world’s total Bitcoin hashing power. In one case, Bit farms, a Canadian mining company, reported a roughly 30% rise in revenue quarter-over-quarter in Q2 2021, with the company mining 26% more BTC than the previous quarter.
After a few months of turbulence, BTC’s hash rate levels appear to have stabilized, with numbers appear to be returning to where they were a few months ago. In this regard, data from crypto analytics firm Crypto Quant shows that the metric has once again surpassed the 150 Exa hashes threshold, reaching 152 EH/s, more than triple the levels attained on June 28 (52 EH/s).
Several Chinese miners have continued to hold out, according to Philip Salter, chief technical officer of Bitcoin mining firm Genesis Digital Assets, who told Laweekly.com that they are looking for an improvement in the situation inside China or for an enticing opportunity to transfer overseas.
Nevertheless, he said that the majority of large-scale mining sites have been purchased by 2021, and there is simply no short-term capacity for adding 5-8 gigawatts of mining hardware, meaning that the matter hasn’t yet found any form of tangible solution.
Moreover, Rug nets believe that Bitcoin’s hash rate will continue to rise when manufacturers supply already purchased devices. Mining pools based in the United States were grabbing large percentages of BTC’s hash rate even before China’s local prohibition took effect in June, according to data provided by the Cambridge Electricity Index.
Riot, a US-based mining company, recorded $31.5 million in mining-related revenue for the three months, up more than 1,500% from $1.9 million in Q2 2020. As a result, it will be interesting to see how Bitcoin’s hash rate recovers in the coming months, particularly as an increasing number of enterprises around the world ramp up their manufacturing capacity.