Dave Perrill, CEO of Compute North, told Block Bitcoin’s hash rate – a measure of computing power dedicated to mining cryptocurrencies – may not recover from China’s closure of crypto mining operations until sometime in 2022.
“Before the second/third quarter of next year, we may not see the hash rate return to the highest level in history,” Perrier told The Block. “This is my hunch.” But, of course, he also hopes that Compute North can help with the recovery: The company hosts mining equipment for its customers, and expects a total capacity of 1.2 GW next year.
Blockchain network data It shows that the hash rate of Bitcoin reached a peak of 180.66 million tera hashes per second (THps) on May 13. However, as China’s crackdown on mining operations expanded to more provinces in June, it declined rapidly until it stabilized at 84.79 million terahertz on July 2. It is now beginning to slowly crawl back.
With Chinese mining operators, Bitcoin’s hash rate may increase Sell their equipment Or transfer their business to More lenient countries. There are Also becomes easier As the hash rate drops, this may motivate others to start their own mining operations, thereby increasing the hash rate.
Efforts to use Bitcoin mining Renovated hydroelectric power plant, Volcanic energy, And other relatively clean sources of large amounts of electricity can also help the hash rate begin to recover. But Perrill warned that for a large-scale operation like Compute North, “it must be 100% renewable, if not impossible.”
It took more than ten years for Bitcoin to reach a hash rate of 180.66 million THps. It took less than a month for the hash rate to drop to less than 50% of the peak value. Now Perrill predicts that it will take a year to climb back. The previous high point. So the question now is how long it might take for the network to reach another cliff.