Bitcoin’s surging value is also reflecting on the asset’s mining power that is edging closer to hitting another record high.
Data provided by Blockchain.com indicates that as of October 24th, 2021, the Bitcoin hash rate stood at 151.21 EH/s, only 22% shy of the all-time high mining power of 188.66 EH/s.
Overall, Bitcoin’s mining power has been rising since plunging to historic lows almost three months ago. During the period, the rate has surged 78% in correlation with the rising Bitcoin prices.
Both Bitcoin mining power and the price significantly dropped in mid-2021 amid an increased regulatory crackdown from China. The country outlawed Bitcoin mining, stating that cryptocurrencies pose a threat to the financial sector’s stability.
At the same time, Bitcoin mining was facing a backlash from environmentalists over the carbon footprint. However, the debate is cooling off as mining is increasingly dependent on renewable sources.
Mining took a hit, considering that China accounted for the largest share of Bitcoin mining globally. The network’s processing power dropped as operators moved from the country to other friendly jurisdictions. Notably, the rising hash rate is a potential indicator that large-scale miners who migrated from China have now settled.
U.S. overtakes China as mining destination
Interestingly, the United States emerged as a friendly destination for miners. Consequently, the U.S has now overtaken China as the world’s largest home of Bitcoin miners, based on a report by Britain’s Cambridge Centre for Alternative Finance. Part of U.S. appeal to miners is that they will have access to renewable energy sources.
As the hash rate increases, the Bitcoin mining difficulty is also expected to surge. As we previously reported, amid the plunge in hash rate, mining Bitcoin became more accessible and profitable. Notably, when many Bitcoin miners go offline, the share of other miners in the network increases.
Furthermore, amid the surging prices, more miners are expected to get online in a bid to profit from the current rally. Over the last week, the value of Bitcoin hit a new all-time, topping $66,000.
The record price was motivated by the approval of the first Bitcoin exchange-traded fund in the United States.