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Bitcoin mining bounces back to level before China crackdown as US takes crown as top hub

  • A ban on cryptocurrency mining in China announced in May sent the global hash rate plunging over summer
  • As mining farms relocate to North America and Central Asia, bitcoin mining activities have resumed to pre-crackdown levels

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Bitcoin mining activities have resumed to the level before China’s crackdown on cryptocurrency mining. Photo: Reuters
Coco Feng

Bitcoin mining worldwide has recovered to its peak level before China imposed in May a blanket ban on cryptocurrency trading, mining and related activities.

The total hash rate, which measures the bitcoin network’s speed of mining new tokens and verifying transactions, reached an all-time high of nearly 182 million terahashes per second on Friday, surpassing the previous record of 181 million th/s on May 14, before falling back to 178 million th/s on Monday, according to estimates by cryptocurrency service provider Blockchain.com.

The hash rate slumped to 85 million th/s in early July after the Financial Stability and Development Committee of China’s State Council, chaired by Vice-Premier Liu He, announced in May a crackdown on bitcoin mining, adding to the nation’s existing clampdown on cryptocurrency trading.

The price of bitcoin also went on a wild ride, diving to below US$30,000 in July from around US$55,000 in early May, before bouncing back to above US$50,000 in October and peaking at nearly US$67,000 in early November.

Bitcoin was trading at an average price of US$46,700 at noon on Tuesday.

While the global hash rate has regained strength, its geographical distribution has altered significantly.

China was the world’s top location for bitcoin mining as recently as June, when it contributed 34.3 per cent of the global hash rate, down from a peak of 65 per cent in April 2020, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI). By July, China’s share had plunged to zero.

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