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The guaranteed hashrate for two blockchains, Bitcoin and Ethereum, tends to recover slowly. The reason is that some mining companies from China have gradually completed their relocation to foreign countries after the crackdown campaign.
Bitcoin and Ethereum Hashrates are on the Rise
Based on data from The Block then the seven-day moving average (7DMA) of the Bitcoin hashrate has slowly increased and remained at 100 exahashes per second (EH/s) over the past three weeks.
Bitcoin hashrate stays above 100 EH/s for days (Source: The Block)
During the recent crackdown, power plants across many provinces in China have been ordered to temporarily stop supplying energy to mining facilities. For example, the case of Sichuan ordered the national electricity grid to cut off the supply of 26 Bitcoin mining factories. This caused Bitcoin’s hashrate to drop below 90 EH/s. This is the lowest level not seen since early 2020.
See more: Impact of Mining Ban in China on Bitcoin Hashrate
The good news is that the hashrate has gradually recovered as it once recorded an increase of nearly 5% overnight. This slow recovery makes mining difficulty expected to increase by 4% in the next correction. Although it had previously recorded up to four consecutive declines.
Also affected is Ethereum as the hashrate has dropped by more than 20% following the suppression orders from China. However, to date, this hash rate has steadily recovered to well above 500 terahashes per second (TH/s) as shown below:
Ethereum hashrate remains above 500 TH/s (Source: The Block)
Mining companies from China resume operations
The hashrate recovery of both Bitcoin and Ethereum is partly due to the fact that Chinese miners have completed their relocation overseas. Because of that, their mining activities have returned to normal.
The pioneer in this “migration” movement is BIT Mining when it announced that it has moved all its mining equipment to its new facility in Kazakhstan. Not only are they working again, but they are also adding more equipment to increase mining capacity. Specifically, BIT Mining said the following:
“An additional 4,033 Bitcoin miners with a total hash rate capacity of 121 PH/s have been moved to data centers in Kazakhstan and are awaiting deployment. In addition, we have signed a purchase agreement to acquire 2,500 new Bitcoin miners, which are expected to be delivered within seven days and will also be deployed in Kazakhstan.”
In addition to Bitcoin, the company has started Ethereum mining operations outside of China with 86.4 gigahashes per second (GH/s) deployed.
“Additional hash rate capacity of 4,713.6 GH/s is expected to be deployed by the end of October 2021. It is expected to account for about 0.7% of the total hash rate on Ethereum.” – The BIT Mining side said about the Ethereum mining plan.
Following in the footsteps of BIT Mining, the Canaan giant has also started Bitcoin mining operations in Kazakhstan. Meanwhile, BIT Digital, a US-listed Bitcoin mining company formerly operating in China, is also in the process of shipping more than 14,500 devices to the US.
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