Bitcoin mining has fully recovered since the Chinese government cracked down on all mining activities earlier this year, effectively shutting down more than half of the world’s miners overnight. . Prior to the crackdown, China accounted for about 75 percent of the “average monthly hash rate.”
an expression used to calculate the computing power required for me Bitcoin. Data now shows that the network hash rate has risen by about 113% in the last five months, successfully reversing the massive decline seen after Chinese miners were forced to cease operations. or move to other countries.
According to a CNBC report, the hashrate, which refers to the cumulative number of terahashs per second (TH / s), peaked at about 180 million TH / s on May 14, but dropped to 86 million TH / s s on July 4th. , last week, the figures returned to an average of 182.83 million TH / s. The ban has forced miners to move their equipment to other countries, such as Russia and the United States.
In Kazakhstan, a country not far from China, this has even led to a series of power outages due to Bitcoin mining that requires large amounts of electricity. The country is preparing to build a new nuclear power plant to deal with this problem. Bitcoin has withstood an attack by a Chinese nation-state that banned mining, and the network shrugged, “said Kevin Zhang, vice president of business development at the popular cryptocurrency mining company Foundry, while speaking to CNBC.
“The bitcoin network withstood an onslaught from a great superpower and came out stronger than ever six short months later. How can anyone argue, “What if nations forbid it?” Again? “He said.
According to Zhang, such a quick recovery was possible because the United States made sure it laid the groundwork for mining to flourish there. “There is a huge appetite for growth, building infrastructure and harnessing blocked energy,” he said.
Cryptocurrency mining consumes large amounts of energy, both through the electricity consumed by the specialized computer equipment needed to solve the mathematical puzzles that produce the coin, and through the energy needed to cool the machines and prevent them from overheating.