It has now been 150 days since China took the drastic step to bitcoin (BTC) completely outlaw mining in a very short period of time. This had major consequences for the network, as a vast majority of all bitcoin miners were located in China. The network has since been restored and seems stronger than ever.
Good development for bitcoin
The recovery that quickly set in was so impressive that some investors even wittily thank China for its recent ban on mining bitcoin and trading cryptocurrencies.
Initially, the hash rate, or the total computing power of the network, by about 50%. The Bitcoin network turned out to be well able to absorb this by, among other things, the difficulty scale down. Meanwhile, the hash rate of the network has again almost the previous one all time highs reaches and the recovery seems almost complete.
Only a few months after the heavy blow, the negative effects of the Chinese ban are almost invisible. In fact, the price of bitcoin is even approaching the long-awaited price point of about $64,000.
According to Chinese crypto analyst Willy Woo, recent developments in China have removed a major obstacle to the progress of the Bitcoin network. Because China is no longer the location of a large part of the computing power of the network, this benefits the decentralization of the network.
This month’s shout out goes to China, for selflessly helping #bitcoin remove the last area of major centralization in its network at her own loss, and the loss of her children and her children’s children. 🙏
— Willy Woo (@woonomic) June 28, 2021
A weakness that previously caused a lot of headaches for many investors and analysts has defused itself.
Miners move
The huge amount of bitcoin miners based in China were forced by the ban to relocate elsewhere. Many miners chose the United States as their new location.
By now, this means that the United States is responsible for such a 35% of the total hash rate of the Bitcoin network. Kazakhstan, Russia and Canada were also popular destinations for miners who were no longer welcome in China.
