The hashrate of Bitcoin returned to 177.5 EH/s for the first time in five months. Previously, the global hashrate dropped sharply in May this year due to the dramatic effects of tightening crypto crackdowns in China.
According to the data by Blockchain.com, the hashrate of Bitcoin has been declining steadily since May 2021. It recovered significantly near the end of July due to improvements in the market environment.
Bitcoin hashrate sharply declined in May after the Chinese government banned cryptocurrencies mining resulting in mining operations across China shut down. According to a survey by the University of Cambridge, as of April 2021, China’s mining capacity accounted for 46% of the total Bitcoin’s hashrate.
The USA accounted for 16.8% of the hashrate in Aprile while Kazakhstan came third with a contribution of 8.2%.
As a result of the ban, many miners moved overseas and restarted their operations in countries such as the US and Kazakhstan, resulting in the diversification of mining operations across the globe.
On the other hand, Iran, which ranks fifth in terms of total Bitcoin rate, lifted its ban on mining imposed in May due to severe power outages the country was facing at the time. The ban was lifted in September.
It also announced a policy of using cryptocurrencies as a means of trade to counter economic sanctions from the United States.