Of hashrates of both bitcoin (BTC) in ethereum (ETH) are slowly starting to recover. A number of Chinese miners have moved to other locations since the ban in their own country.
Bitcoin’s hashrate has averaged 100 exahashes per second (EH/s) over the past three weeks. A further 4% increase is expected in the next difficulty adjustment. After China’s crackdown, to ban crypto mining, the hashrate briefly dropped below 90 EH/s. A level that has not been achieved since the beginning of 2020 and a significant difference compared to the all-time high of 180 EH/s.
Ethereum has also been hit hard by the new rules in China. At first, the strict measures only seemed to apply to bitcoin mining, but that turned out not to be entirely correct. Graphics cards used in mining ETH also became obsolete, leading to a lot of second-hand mining equipment appearing on the market. Ethereum’s hashrate also declined, but meanwhile also shows a reasonable recovery with a hashrate of over 500 terahashes per second (TH/s), averaged over the past 7 days. This data comes from The Block Crypto.
Back in business
It seems that the rising hashrate has to do with the relocation of a number of Chinese miners to other locations, allowing them to resume their activities.
Located in Shenzhen, China BIT Mining already indicated after the developments in China that it would move 3,000 BTC mining units to Kazakhstan before the end of July. In the end, this even became 3,819 and there will be more. BIT Mining stated:
“Another 4,033 bitcoin mining machines with a total hash rate capacity of 121 PH/s have been shipped to data centers in Kazakhstan and are awaiting deployment”
On top of that, there are also 2,500 new ones mining rigs purchased, expected to arrive next week and will also move to Kazakhstan.
In addition, BIT Mining has also started mining ethereum outside of China. In February, the company bought equipment for about $30 million. These machines will be deployed in the course of 2021, which will contribute to a further recovery of the hashrate.
Meanwhile, BIT Digital, another US-listed bitcoin mining company that previously operated in China, is in the process of shipping more than 14,500 bitcoin miners to the United States.
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