China’s cryptocurrency mining restrictions have significantly lowered the hash rate, as many key players have had to suddenly halt their BTC mining activities. This, in turn, translated into a decrease in the difficulty of mining.
Network hash rate exceeded 150 EH/s
CryptoQuant (a company that provides data related to the blockchain network) reported that it finally managed to exceed 150 EH/s. In comparison, the lowest value recorded this year was on June 28, when EH/s dropped to 52. The network’s highest power was on May 13 this year, when EH/s approached 200 (197.6). After that, however, it quickly dropped by about 65% by the increasing restrictions that China started to impose on miners (see also: all Chinese bitcoin bans).
The increase in value means that more hardware is connected to the network. This in turn automatically translates into better protection against possible attacks. Additionally, according to CryptoQuant, the continued upward trend could make it possible to break the May record in the coming months.
Is this the end of the miner migration?
It is impossible to say with 100% certainty that this is the end of the miner migration. However, such a large increase in power allows us to assume that at least most of them have reconnected their excavators to the network.
Greater security = greater difficulty of extraction
More excavators will translate into an increase in the level of difficulty of mining, which in early July dropped significantly. We described this in the article The largest historical drop in Bitcoin network difficulty. The difficulty adjustment made at that time was almost 28%, which translated into the largest drop that the network has seen in its entire history (since its launch in 2009). Because the Bitcoin network updates the level every 2016 blocks, it manages to maintain approximately ten-minute intervals between blocks despite increases or decreases in hash rate.