A crackdown on mining operations in China, the global leader in Bitcoin mining computational power, has plummeted the Bitcoin hashrate to its lowest since November 2020. The restrictions have caused an exodus of miners and their equipment from China as they search for resources abroad. For miners outside China, this decline has created the opportunity to purchase cheaper mining equipment, lowering the upfront costs for you to begin creating Bitcoin.
The average weekly hashrate dropped to 129.1 million exahashes per second in mid-June, a huge drop from the 180.6 million record high in May 2021. Exahashes per second is the unit used for measuring Bitcoin mining computing power, with one being equal to 1 quintillion hashes. This six-month low has played its part in the decline in Bitcoin market prices. However, as global hashrates begin to steadily increase, Bitcoin is likely to see its value skyrocket.
Higher hashrates provide the benefit of more resources simultaneously processing and securing transactions on the blockchain, as well as heightened cybersecurity. Analysts have predicted that Bitcoin’s processing power could recuperate if miners relocated to areas with more lax regulations.
Various Bitcoin mining-hub regions within China are cracking down on both legal and illegal Bitcoin mining operations, citing high energy consumption as more regulations await. Despite this decline, Bitcoin mining hashrates are expected to shoot back up in the coming months as Chinese miners set up shop in other regions around the world.
These developments offer an optimal time to purchase equipment as it is still heavily profitable, with Bitcoin trading for well over $30,000 at the time of writing, while mining equipment costs can sit anywhere below $10,000. Many Chinese miners have been knocking at Kazakhstan's door, looking to take advantage of their high-quality hosting, globally competitive rates, and government embrace of cryptocurrency. Wattum not only offers hosting in Kazakhstan for its customers at a large-scale facility, but also maintains equipment availability and management to help you along every stage of your mining journey. Purchasing equipment from a trusted provider while prices are low can benefit you when market prices boom. With analysts anticipating Bitcoin’s market value to hit the $100,000 milestone in the near future, now is the time to start mining.