According to industry experts, Bitcoin’s hash rate, a measure of total computing power used to protect blockchain networks, has accelerated the transition of Chinese miners to another location in the United States. As miners expand their capabilities, they may return to record faster than expected.
Hash rates on blockchain networks peaked at around 180.6 eksahs per second in mid-May, following a rise in Bitcoin (BTC, 4.01%) earlier this year. After China began cracking down on cryptocurrency mining, it fell to about 84.3 exahash per second in early July.
The 7-day moving average of the Bitcoin hash rate on Thursday was 130 exs per second, 50% higher than the July lows. And even after this week’s difficult tweaks that made it difficult to use the new Bitcoin, the network seems to be stable. Bitcoin’s hash rate has recovered significantly in the past month. (Source: Glassnode)
Bitcoin traded at $ 47,493 at the press and has risen 2.9% in the last 24 hours. Most recently, cryptocurrencies changed to around $ 30,000 last month, prompting strong markets to once again attract some Bitcoin miners and encourage others to increase their capacity.
Bitcoin’s hash rate could reach its highest peak later this year and continue to rise, according to Sam Doctor, Chief Strategy Officer of BitOoda.
“A month or two ago the recovery was still slow and I expected it to be in the first quarter of next year before it reached its previous peak,” said the doctor. “But the hash rate seems to be recovering faster.”
According to doctors, the migration of Chinese miners who sent crafts to places such as the United States and Kazakhstan helped the recovery.
Formerly based in China, Poolin, a cryptocurrency mining group, is looking for its own facility in the United States to build a total capacity of 200 megawatts in the next 9-18 months. Alejandro De La Torre, Vice President of Mining Group Poolin, has already secured a US host station to resume online operations.
“We really wanted to have at least a certain percentage online,” said De La Torre.
“For very expensive electrical equipment such as substations and transformers, it takes time to build and buy these,” says DeLa Torre. “So it will take some time for us to have our own facility.”
In addition to the migration of Chinese miners, US miners have also expanded their capabilities, according to Dave Perrill, CEO of cryptocurrency mining company Compute North.
“A large number of orders were in progress before the Chinese ban came online,” he said.
Perrill believes it could take another 6-12 months for Bitcoin’s hash rate to peak again.
“When we reach the highest peak, we see acceleration,” he said. “And I think the peak will triple in the next 18 to 24 months.” In other words, it can be tripled.