The total Bitcoin mining hash rate is now higher than before the Chinese ban on miners
The global Bitcoin mining hashrate has finally recovered from the crackdown on miners in China back in May, as per the latest Blockchain data. Right before the ban on Bitcoin mining, its Total Hash Rate per second (TH/s) numbers stood at the record 180.666m threshold, then quickly plunged after miners in China had to unplug and go abroad, cease operation, or go underground. A number of them relocated to nearby Russia and Kazakhstan, making those two countries the world's number one and number two in Bitcoin mining operations. A lot of Bitcoin miners moved to the U.S., too, in particular to states with freewheeling electricity markets and lax business regulations like Texas, pushing America into the top 3 mining destinations.
On Friday, however, Blockchain reported a complete recovery of the pre-ban Total Hash Rate. It even managed to surpass the record spring levels as it stood at 181.774m TH/s. While the new destinations like Kazakhstan also started experiencing what China said was the reason for the ban, namely unsustainable energy network loads and consumption, forcing them to ration electricity, mining there continued unabated, save for those who left for greener pastures without rationing. Brandon Arvanaghi, the CEO of Meow, a startup that aims to facilitate corporate treasury participation in crypto markets, explained the reasoning behind this swift recovery from China's Bitcoin mining ban:
The bitcoin network withstood an attack by a major superpower and emerged stronger than ever six short months later. How can anyone ever argue, ‘But what if nations ban it?’ again?
All the money printing during the pandemic meant that more capital needed to be deployed. People were looking for places to park their cash. The appetite for large-scale investments had never been bigger. A lot of that likely found its way into bitcoin mining operations in places outside of China.