Miners that were forcibly thrown out of their country in China have successfully been able to relocate their mining plants outside China and have been able to resume their mining operations. With them taking back their rightful place amongst global miners, launching of their mining operations have significantly reduced the Bitcoin mining difficulty level. While the pressure from miners in North America and Russia has been slightly lifted, yet their competitors are restored, shrinking their mining cuts which they were otherwise stacking in the absence of Chinese miners.
Bitcoin mining activity has been under immense pressure because the activity has reduced significantly. This huge reduction is caused because of several miners from the Chinese origin moving into other places and establishing their settlements therein. Because of this, there is an increase of approximately 13% in the difficulty of Bitcoin mining activity.
The major reason of increase in the difficulty is because of Chinese Government who forced evicted most of Bitcoin miners. This then led to miners moving out of China and settling in adjacent countries which provide crypto friendly environment as well. A few of them moved into the mining industry in North America and a few found their place in Russia. However, most of them are preferring to establish their mining plants in Kazakhstan, a place near to China.
The good thing is that majority of the aggrieved Chinese miners have re-settled and they have also resumed their Bitcoin mining operations. This has significantly changed the scenario and brought it slightly down to a certain extent, which is a welcome change.
Another good thing about Bitcoin mining is that at presently Bitcoin’s hashrate power too has recovered significantly. There has been a recovery of approximately 85% within the Bitcoin’s mining hashrate since China launched Bitcoin mining crackdown operation.
The recovery of Bitcoin’s hashrate is because of the collective efforts of miners in Russia, North America and the new settlers. Once again, the mining industry is engaged in a healthy competition which would ultimately benefit the industry.
While the miners from China were searching for alternate farming options, the burden was shifted on North American miners. Though they were facing difficulties, yet they made sure that the demand and supply remained intact. For this purpose, the miners in North America also purchased additional mining machines, the delivery of which have been done.
In the field of mining, “competition” means reduction in profits. When Chinese miners were absent, the miners in North America and Russia shared huge profits from the mining activities. They weren’t only producing more Bitcoins but in fact making extra monetary gains.
While difficulty level is now down and burden reduced, unfortunately the cuts of North American and Russian miners have reduced. They have to now share them with the Chinese miners coming back in action.