Bitcoin has now recovered almost all of the hashrate lost during the Chinese mining crisis.
The problems of Bitcoin mining in China
The first symptoms of a contraction in mining in China were already there in the second half of April, but they caused a collapse of the hashrate only temporarily, so much so that by mid-May he had already fully returned.
But precisely between the second half of May and the end of June, the pressure was felt, as the Chinese government authorities had more or less voluntarily induced to close many Chinese mining farms.
This has led to a substantial collapse actual hashrate, Which, however, is now recovering two months later.
In fact, as reported by Cryptoquant, as of June 28 the hashrate has almost tripled.
In fact, the minimum peak of this collapse was reached on June 28. Truth be told, the hashrate calculation is just an estimate, so there are different values available depending on who does it.
Based on what we read on Cryptoquant, the low peak on June 28 would have been 52 billion GigaHash / s, or 52 ExaHash / s. According to other sources, it would have been 68 Ehash / s, but still much lower than the peak of about 200 Ehash / s on May 13.
Also based on what we read on Cryptoquant, yesterday the Bitcoin mining hashrate would have returned to 152 Ehash / s, or almost triple compared to June 28. According to other sources, it could be included in a fork that goes from 142 to 177 Ehash / s.
Bitcoin's hashrate is now doubling
The point is that for practically all sources yesterday's hashrate was more than double that of June 28, And in any case, on average, quite close to triple.
It should be noted that this increase in recent days has reduced the blocking time to less than 10 minutes, also at a time when there are never more than 280,000 transactions per day on the Bitcoin blockchain, not less than the average of 2019 .and 2020. However, it is possible that more and more small value transactions have moved off-chain to the Lightning Network.
All this keeps the average fees on BTC transactions below $ 3, with the median even well below $ 1. Since the average transaction value is very high (around $ 200,000), these are negligible costs. On the Lightning Network, on the other hand, fees are practically negligible, clearly less than $ 0.01.
The reasons for the growth of the hashrate and the profitability of Bitcoin
The reason for the growth of the hashrate is probably due to the rapid increase in the profitability of Bitcoin mining, which went from 0.17 to 0.46 dollars per day for THash / s. In other words, it has almost tripled since June, as has the speed.
However, it must be said that the increase in the hash rate ultimately reduces profitability, which therefore seems set to decline a bit in the coming weeks, unless the value of BTC rises again. Note that Bitcoin's current level of mining profitability is at its highest level since July 2019.