Although many call the recovery of the Bitcoin hashrate slow, everything indicates that it will reach the pre-accident limits in China.
The computing power or hashrate of the most important of digital currencies, Bitcoin, is slowly beginning to recover. The event is due to the move of the main farms in Xinjiang province to Sichuan. It should be remembered that an accident recently occurred in Fengyuan, the main power plant in the first of these regions.
The event, which occurred at the beginning of April, has also uncovered a series of criticisms against the so-called “dirty energy”. The mine, as reported by numerous media, is powered by coal, which makes it a target of attacks by environmental groups.
Other factors would have directly influenced the pioneering cryptocurrency’s hash power drop. For example, the multiple inspections in some of those provinces in the northeast of the Asian country. Although they were not directed against Bitcoin mining, they affected it in a significant way.
As its hashrate recovers, the price of Bitcoin returns to an upward trend
One of the most striking aspects of the fall of the Bitcoin hashrate due to the aforementioned events, was the fall in the price of that cryptocurrency. Bitcoin’s hash power, after hitting an all-time high, plummeted to 98 EH / s. This fall dragged down the value of the digital currency, which fell from a peak above $ 62,000 to approximately $ 47,000.
The fall in the price of the currency puzzled investors and the slump in prices was expected to last. However, Bitcoin’s bull run, which lasts for several months, continued after the reasons for the loss of the hashrate became known.
After this, it was a matter of time for the price of Bitcoin to rise to the same extent that investors continue to accumulate. In this way, CoinDesk reports, the movements of some mining centers began from Xinjiang, the site of the accident, to the province of Sichuan. This migration has allowed the Bitcoin hashrate to continue to recover.
This rise in the computing power of digital currency, although progressing unstoppably, is considered by some to be “slower than expected.” In this sense, Liang Da, from F2Pool, stated in the aforementioned portal that the miners are reactivated in a very passive way.
Inspections come to an end
The other aspect that has allowed the Bitcoin hashrate to continue to regain its strength is the end of the inspections. Thus, the authorities of the People’s Republic of China carried out a series of inspections and maintenance of coal-fired plants in some provinces. Among these regions, those where the largest number of mining farms of the most important of the cryptocurrencies in capitalization are concentrated.
According to reporter Wu Blockchain, “security inspections in northwest China have basically concluded.” At the same time, the hash power of Bitcoin begins to recover. In the same order, Wu emphasizes that “the inspections were not aimed at the mining industry in particular”, however, they affected it considerably.
It is important to note that, although the recovery of the hashrate continues safe towards the limits before the accidents, it is still far from the goal. According to Bitinfocharts, the hash power of Bitcoin stands at around 145 EH / s, indicating that there is about 25 or 30 EH / s left to speak of a full recovery.
Parallel to this, the price of Bitcoin also recovers. At the time of writing the quote per currency is $ 54,500 USD.