global Bitcoin network appears to be reeling from the recent collapse caused by the Chinese crackdown on the cryptocurrency mining industry.

According to YCharts, the Bitcoin hash rate reached 115.71 EH / s on July 27, and although it fell to 106.7 EH / s the next day, it still marks an 82.5% increase from the sharp drop. of 58.46 EH / s observed a month earlier.

Bitcoin’s hash rate, the unit of measurement for network processing power, hit an all-time high above 198 EH / s in mid-April.

However, it fell dramatically in the next two months, after authorities in several Chinese provinces issued lockdown orders against Bitcoin miners, forcing them to relocate to countries such as the United States and Kazakhstan.

increase in hashing power will also increase the difficulty of mining Bitcoin in two days, when the next parameter adjustment occurs.

Data from BTC.com shows that after four consecutive drops in difficulty, the next adjustment on July 31 is expected to see Bitcoin’s mining difficulty rise by more than 4%.

next difficulty setting will take place in less than 48 hours. Source: BTC.com

Mining difficulty is a measure designed to calculate how much computing power is needed to produce new Bitcoin; fewer miners online, the easier it will be to mine Bitcoin.

Bitcoin’s mining difficulty peaked at over 25 trillion in mid-May. However, since then it has become 54% easier to find new blocks.

Also reading Bitcoin (BTC) points to further resistance after navigating above $ 50,000

Slow but steady recovery

Some experts believe that the Bitcoin network is now on its way to recover from the crisis, even predicting a new all-time high in mining difficulty (with the caveat that it won’t happen in the next few months).

“In the short term, during the next difficulty adjustments for the rest of the year, we can expect a slow and steady increase in the hash rate of the global network and therefore an increase in the difficulty of mining Bitcoin”, Edward Evenson, head of business. development at Brainins, the operator of Slush Pool, said decipher.

This is because the new generation mining machines from Bitmain and MicroBT start to be delivered to miners.

Meanwhile, miners who already have a significant amount of existing capacity will activate more machines. However, Evenson believes this will be a long process due to the massive exodus of machines and the hash rate from China in recent months.

He also pointed to the lack of rack space and available power capacity to house all the machines that have been shut down in various Chinese provinces, including Yunnan and Anhui.

“It will be some time before these machines turn on and we go back to an all-time high in terms of global hash rate,” Evenson said, adding that a new all-time high is likely to occur “sometime in the first quarter or second. quarter of next year «.

With the Price of Bitcoin recently hovering above $ 40,000, miners may have more reason to be bullish; According to YCharts, his income has also increased in the last week.

Read also Three reasons to choose cloud mining

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