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A new all-time high for Bitcoin hashrate
A new all-time high for Bitcoin hashrate
Mining

A new all-time high for Bitcoin hashrate

By Marco Cavicchioli - 11 May 2021

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Bitcoin’s hashrate has hit a new all-time high

After plummeting in mid-April due to problems at some Chinese mining farms linked to a coal mine fire, it began to recover towards the end of the month and returned to previous levels by early May. 

But the mid-April hashrate collapse also generated a sharp downward correction in difficulty at the beginning of May, which allowed mining profitability to recover after falling in late April. 

So it’s no surprise that after the sharp drop in difficulty, a new little Bitcoin mining rush was triggered, which led to the hashrate recording a new all-time high today at over 180 Ehash/s

We should note that the record, before the mid-April crash, was just over 160 Ehash/s, so it is an increase of over 10% on the previous ATH. 

Moreover, what happened since mid-April has furthered an already ongoing process of reducing the proportion of hashrate residing in China

The Chinese website 8btc.com reports that the country is gradually losing its dominant position in Bitcoin hashrate. 

Many new miners are setting up farms in other parts of the world, but even some Chinese miners are moving abroad.  

Recently the dominance of Chinese hashrate has been declining significantly, so much so that the author of the 8btc.com article himself, Iyke Aru, wrote: 

“Perhaps, this could be a good thing for the Bitcoin network in the long run, as it will make it more decentralized”. 

The Bitcoin hashrate in the world

Furthermore, to date, it would appear that around 11% of Bitcoin’s hashrate is located in the US, while Canada is also starting to play a crucial role in this area. 

In China, several factors hamper local mining farms, such as legislation that is hostile to cryptocurrencies and restrictions on compliance with the country’s electricity production and consumption commitments. 

There are even rumours of a possible future boycott of coins mined with polluting energy sources, leading to a slow migration towards the use of renewable energy by existing mining farms.

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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