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Bitcoin Hashrate Hard to Restore to 130E This Year Unless China Softens Its Grip: Insider Colin Wu

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Sat, 06/26/2021 - 08:10
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Yuri Molchan
Insider Colin Wu believes that Bitcoin hashrate is likely to remain far from its previous peak this year unless China softens its policy against miners
Bitcoin Hashrate Hard to Restore to 130E This Year Unless China Softens Its Grip: Insider Colin Wu
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Chinese journalist Colin Wu, who covers major news on cryptocurrencies and blockchain in China and other Asian countries, has just opined that the Bitcoin hashrate is likely to remain low compared to its all-time high reached in May.

Bitcoin hashrate prints massive drop

The historic peak of 171 EH/s was hit on May 13 and since then Bitcoin hashrate has tanked by over 50 percent.

The drop occurred after Chinese authorities started to ban crypto miners in various provinces: Sichuan, Xinjiang (the two biggest crypto mining hubs) and others too.

Miners from China have started exodus to friendlier countries, such as Canada and US, Kazakhstan. However, Wu believes it will be hard to reach the previous BTC hashrate peak within next six months unless the Chinese government softens its witch hunt on miners.

The hashrate has begun to rise slowly back.

Related
Bitcoin Miners to See Biggest-Ever Increase in Profitability

Low BTC hashrate leads to low BTC price

The massive drop in the Bitcoin hashrate has impacted the BTC price negatively. The world’s flagship digital currency saw a massive drop below the $29,000 level on June 22.

However, it then quickly restored to $34,000. Today, however, Bitcoin tanked from the $32,000 level to the $30,000 zone.

It is sitting at $30,736, as per the data from CoinMarketCap, at the time of writing this.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.