- Bitcoin hash rates soared to new highs at the start of 2022.
- The new figures are a leap of 100% from figures 6 months ago.
- Bitcoin mining has experienced some traumatic blows but the future looks bright for the industry.
After a tumultuous 2021, Bitcoin mining hash rates have peaked in the first few days of 2022. Several reasons have played a role in the new metrics of the industry.
New Year, New Hashrates
According to figures obtained from Bitinfocharts, hash rates on Bitcoin’s network is now at 203.5 exahash a second (EH/s). This number is a new record high for hash rates on the network as these metrics have never been reached in its 13-year history.
The new record is staggering because hash rates plummeted to new lows as Chinese miners went dark during the cryptocurrency witch hunt by authorities. During that period, the asset fell to 94 EH/s as the regulatory noose tightened in China. The subsequent migration of miners to newer jurisdictions played an integral role in the rebounding of hash rates.
Hashrates is the sum total of computational power that is used to mine Bitcoin and validate transactions on the network. Generally, the rule of thumb is that higher hash rates mean a more secure network because attackers would need more computational power to attack the network. These new figures mean that the network is at its most secure level yet.
The rebound from the lows of July 2021 means hash rates have risen by over 100%. Apart from the dip, mining hash rates have risen by 49% from January 2021 to January 2022. Some experts are of the opinion that Bitcoin prices mirror hashrates.
“The constant 10-minute emission schedule of Bitcoin is the lure that will always attract miners – even acting irrationally – that pushes up hash rate with price following,” said Max Keiser.
The New Distribution
The US plays a key role in the new distribution of Bitcoin hash rate given the huge number of miners that have settled in the country within the last 12 months. Data from Coinmarketcap shows that the bulk of Bitcoin miners is in New York, Kentucky, Georgia, and Texas.
Kazakhstan is another major player in the game as it houses the bulk of fleeing miners from China. Russia comes in third place with its growing number of Bitcoin miners as the country’s parliament tries to work out legislation for the industry.
There are unconfirmed claims that as much as 20% of Bitcoin’s hash rates come from mainland China with several mining farms still operating under the radar. Other key players include Iran, Malaysia, Canada, and Germany.