Bitcoin Hashrate Mints New All-Time Highs

The metric has fully recovered after a plunge in mid-2021 as the Chinese government clamped down on local miners.

AccessTimeIconJan 3, 2022 at 10:09 a.m. UTC
Updated Jan 3, 2022 at 4:12 p.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

Hashrate figures for Bitcoin set new highs on Sunday night after crossing previous highs from mid-2021, data from analytics tool Glassnode show.

Hashrate refers to the amount of computational power used by miners dedicated to the minting of new bitcoins and verification of new transactions on the Bitcoin network. Millions of calculations are solved each second to “win” new blocks, in a process broadly called mining.

Higher hashrates mean a stronger and more secure network, making it hard for a group of attackers to execute an ill-fated 51% attack and gain control of the network.

But the upkeep of such intensive machinery is costly and requires deep technical knowledge – which has historically led miners to set up in inner regions of China, where manpower is affordable and climate conditions are conducive.

The Chinese government, however, isn’t big on crypto. A crackdown on local miners and mining businesses last year saw Bitcoin hashrates plummet to as low as 61 exahashes per second in June 2021, from over 190 exahashes per second in April 2021.

Data at the time estimated that over 46% of Bitcoin’s requisite computing power was supplied by Chinese miners. The ban has since led to an exodus of Chinese miners to other regions, such as Kazakhstan, Iran and the U.S.

But Bitcoin has since bounced back and the network has not taken very long to recover: Glassnode data shows hashrates spiked to 201 exahashes on January 1, surpassing April 2021 levels.

Some engineers say the recovery showcases the network’s resilience after a plummet last year.

“Weathering and completely recovering from a 50%+ drop due to a mining ban by the country with the most hash power was a major milestone for network resilience,” said Casa wallet founder and Bitcoin developer Jameson Lopp in a tweet on Sunday night.

Bitcoin hashrates hover at 189 exahashes per second on Monday morning at the time of writing, data shows.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

CoinDesk - Unknown

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

Trending

1
CoinDesk - Unknown
Why Brands Should Adopt a ‘Hybrid DAO’ Model

Crypto allows brands to give customers a voice, leading to stronger communities and products.

CoinDesk - Unknown
2
CoinDesk - Unknown
Two Polygon, Fantom Front-Ends Hit by DNS Attack

Two gateways provided by Ankr were exploited on Friday.

CoinDesk - Unknown
4
CoinDesk - Unknown
What Are Crypto Screeners?

A crypto screener is a web-based tool that allows users to search for cryptocurrencies by criteria.

CoinDesk - Unknown