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The total Bitcoin mining hash rate is now higher than before the Chinese ban on miners

Bitcoin miners have survived and thrived after China's ban (image: Dmitry Demidko/Unsplash)
Bitcoin miners have survived and thrived after China's ban (image: Dmitry Demidko/Unsplash)
The Bitcoin mining network has demonstrated its resilience in the face of major country crackdowns, as the Total Hash Rate of miners completely recovered to pre-Chinese ban levels on Friday. Analysts are saying that the reason behind this quick recovery of the global Bitcoin mining network was due to a combination of factors. On one hand we had the swift reactions of mining companies which moved to more welcoming countries like Russia, Kazakhstan, or the U.S., and on the other there was the Fed's money printing spree that left investors with tons of cash they had to park somewhere.

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.

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The Total Hash Rate of Bitcoin miners has completely recovered from the Chinese ban

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Daniel Zlatev
Daniel Zlatev - Tech Writer - 260 articles published on Notebookcheck since 2021
Wooed by tech since the industrial espionage of Apple computers and the times of pixelized Nintendos, Daniel went and opened a gaming club when personal computers and consoles were still an expensive rarity. Nowadays, fascination is not with specs and speed but rather the lifestyle that computers in our pocket, house, and car have shoehorned us in, from the infinite scroll and the privacy hazards to authenticating every bit and move of our existence.
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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2021 12 > The total Bitcoin mining hash rate is now higher than before the Chinese ban on miners
Daniel Zlatev, 2021-12-11 (Update: 2021-12-11)