Blockchain.com data shows that the BTC hashrate is slowly recovering and the 7-day moving average is close to 100 EH / S – the level last recorded in May 2020. Miners are now expected to settle in their new homes and grow further.
But with the hashrate around 200 EH / S, we still have a long way to go before full recovery is achieved.
The BTC hashrate is recovering
Analysis of the BTC hashrate indicates recovery from the Chinese FUD. In April, Chinese authorities began banning financial institutions from trading cryptocurrencies and ordering miners to close down for environmental reasons.
This not only triggered a drop in prices BTC but an exodus of miners also followed. Analysts liken the decline of the limbo hashrate as Chinese miners have suspended operations and are looking for new, friendlier places.
“As the most serious impact of China’s mining ban is over, the hashrate is likely to have an upward trend in the coming months as more miners move to other regions.”
Several countries have attracted Chinese miners who want to relocate, including the United States, El Salvador and neighboring Kazakhstan.
Research from the University of Cambridge shows that Kazakhstan is becoming a mining hub. In April 2020, Kazakhstan accounted for 6.2% of global mining. A year on and this figure is now 8.2%.
This is partly due to the turn of the Kazakh government, which in 2019 changed its mind about cryptocurrency mining. Under President Nursultan Nazarbayev, the government has taken a number of steps to support the sector. This includes legal status and favorable tax regulations for profits from crypto mining.
Kazakhstan is fully crypto
How states local media, Kazakh citizens will soon have the opportunity to open crypto bank accounts. This will allow account holders to trade in BTC and other cryptocurrencies. In the pilot project, registered crypto exchanges will cooperate with local banks in providing services.
Commenting on the situation, Sergey Putra, the government relations coordinator of the Kazakh Association of the Blockchain and Data Center Sector, spoke about billions of dollars in global daily turnover in cryptocurrencies. He added that if Kazakhstan could capture only a small fraction, the economic benefits would be huge.
“Even if Kazakhstan receives a fraction of a percent, even one percent of that turnover, it is big money that will come to Kazakhstan in the form of investment and that will remain there in the form of taxes, jobs and wages.”
Despite Kazakhstan’s stance on mining, cryptocurrencies are currently illegal. However, it is generally assumed that the government will lift the restrictions if the pilot project proves successful.