Bitcoin Forum

After the Bitcoin hash rate dropped down since June 2021 after China climbed down on Bitcoin miners, this week the bitcoin hash rate has returned and made a new all-time high in its transaction hash rate which points to one thing that the price of the cryptocurrency will see a new twist in uptrend dimensions.

And this is quite amazing. Mempool is quite clean of transactions.

We can see now using https://mempool.space/ that we can get a confirmation with just 1 sat/vbyte.

Bitcoin is fast, cheap and secure.

Miners are investing in bitcoin. I believe big players are investing as well. We should not panic sell in this dip

I thought that the mining ban in China is lifted but I couldn't see any news if it's lifted.
I think there might be newborn gear produce that could mine more than 110th/s which I think is one of the reasons why the hashrate is rising and reaching a new all-time high.

I don't know about the price if it becomes an uptrend but since the hashrate is increasing more supply is coming.
So if Bitcoin is still in low demand then the price movement is still stable or downtrend. I'm not FUD but it's just my own analysis.

As expected. And as I said those months ago, if THAT is the extent of the effect on hashrate on the China exodus, then all those qualms we've sometimes had over Bitcoin's distribution of hash power can be put to bed. If anything, that incident brought in many more new players, further diversifying miners.


It's been for the majority of the year, actually. I've caught a few times where the fee's 3 to even 15 sats as a suggested next block confirmation, but that's usually when there's been an unusual amount of time from the last block found. A 1 sat/byte tx is all I've done all year long for non-urgent transactions and everything's in before 24 hours pass.

It's good news for miners like us, I hope it does give great deals for us. How did it go for miners on China? They the go back to mining again? What ever comes I won't stop mining Bitcoin or eth or any other coins, aside from it gives me money I can most of my time mining and thus contributing to the network.

You will read many news like this in future.

Bitcoin Hashrate Hits Record 8,350,000 TH/s While Price Trades Sideways (https://bitcoinist.com/bitcoin-hashrate-hits-historic-high-price-trades-sideways/)
As BTC price gets close to $36K, Bitcoin network hash rate hits new high (https://cointelegraph.com/news/as-btc-price-gets-close-to-36k-bitcoin-network-hash-rate-hits-new-high)

If China crackdown on mining can not stop Bitcoin network, what else can?

Be strong and if you believe in Bitcoin, its network, its core technology and powerful financial freedom it gives to community, let's strengthen your belief more. It is one chance in your life to believe in or disbelieve in Bitcoin.  8)

It is a positive sign on three aspects: price, decentralization and transaction licenses. We are at the $50k USD and still need near-zero fees to confirm transactions. Therefore, the situation is better than 2017, but it may not be excellent in price. We may need to wait a month or two until we reach 70K USD.

Not a tech person. But for me Hash rate = security.
Security is now the number one thing when it comes to any cryptocurrency. At the same time this shows some few other things as well:
1. Dominance of China over the market died
2. Miners were able to upgrade and adjust which means it would have long term benefits since it would not be controlled by the Chinese
3. Price will start recovering because of the good news
It's not just the price that might have a positive feedback, it would also be the general health of the market. We can also see + effects on other Altcoins as well. Their trading pairs might be on the top soon.
Also a side note :
Not always is the increasing hash rate a good implication since we might be needing more energy, more energy consumption perse, so to make the whole thing sustainable, they might have to switch to renewable sources of energy.

Ah, how come? How all the Chinese guys started mining once again LOL. It's quite surprising that we got an ATH while China has banned mining. Is it possible that all these miners from China have shifted from China to more Bitcoin friendly country? China news fud is going to die soon and won't have much influence over the market I guess.

That is what most probably happened.
When you put up a mining rig in a county where it has been an anti-crypto government since the very beginning, you'll be expecting a crack down anytime to any crypto related investments & businesses, and Bitcoin mining are one of those.
So, the most important thing and the most safest thing to have is a contingency plan. Once a ban is imposed, you'd better be ready to vacate all your hardware to a place where it's unlikely to be cracked down as soon as possible.

Isn't this the other way round? What I have seen in the past is that first, the price of bitcoin would rise and accordingly miners come in and the hash rate rises too, same happened this last time also until the China ban, I have never seen the market touching new highs because the hash rate has gone very high. But yes this does indicate one thing that just because one big country has banned mining doesn't mean that mining would stop altogether, miners just shifted their location or the old miners exited and the new miners have joined in the pool. Indicating to the remaining countries also that it's almost impossible to ban mining altogether.

Just a few months ago, China has been cracking down on miners, but all they did was force miners out of their pitiful situation and seek business somewhere else. It's never the loss of the network nor the miners as a whole, but rather the governments which constantly tried to ban bitcoin and all of its machineries in favor of their own interests. They gain nothing in return, and lost just a whole lot more by doing that silly move.

This can be a piece of very good news for bitcoin miners also I can see the mempool is nearly empty of transactions and most of the transactions can be confirmed with even 2 or fewer sats and this situation on the bitcoin network is really nice. However, I didn't see any news about China and the ban if it's lifted or not. Also in my idea after this good situation and the recent price fall which was necessary for recovering the price, everything is ready to see a higher target because of this good situation of the network.

If I understood it right, you seem to be expecting miners receive more bitcoin because of the hash rate increase.
While there will be an ~8% increase caused by the faster blocks, that will last only 2 more days, until the next difficulty adjustment.
So overall medium - long term effect on the price should be upwards.

If I've done similar math as you did, the downwards trend should be there only on short/very short term (and I would not be certain about that either, since we already had the drop).

Since, 2012-2013 when bitcoin price was to low like satoshi.Now 2020-2021 Bitcoin price huge increase and this year i has been reached $66k+. Bitcoin is still developing their system and price. I think 2022 Bitcoin price wil be back high rate and it will be reached $70k+. And broke the all record price.

I'm guessing that in addition to all the large mines coming back on the colder weather in the northern hemisphere is bringing back a bunch of smaller home miners who are using them as heaters.
Last year I had about 40th that I was using to heat my place instead of gas. Lost money running the older units, till the bull run, but it still was better then just burning gas for heat.

This year for me personally I just have 17th or so, but my neighbor is running about 65th to heat his home & garage and workshop out back.
How many people are going the same. 10th here, 25th there and so on does add up.

-Dave

Makes sense for sure now that we are in the winter months in the northern hemisphere.

All in all this is a good news story, as meny have posted above, it just goes to prove
that no one country can have an effect on mining with their decision to ban or not the
activity. There will always be people ready and willing to mine at an opportune time.

A quick grab from > https://www.blockchain.com/charts/hash-rate

I think months after the Chinese crackdown, hash rate has slowly getting up and maybe we may have reach the peaked right now and hopefully it could translate to the price upsurge in the next couple of weeks.

Also the next time we hear about news coming from someone spreading FUD again about Chinese banning everything related to crypto, we should point them out to the hash rate to kill their arguments.  ;D

The last news I read was they were asking for public opinion on whether they should lift the ban or not.
We'll just go back to the ban-unban-ban-unban news if they actually lifted it.

China ban FUDs won't be as effective as before. Even the newbie traders and investors are probably tired of hearing the same thing over and over again.

Can't wait for the news to catch onto this, and spin a story off about Bitcoin being bad for the environment once again. It'll be like clockwork. In fact, I'm quite surprised they haven't already start spinning it this way.

Really? That sounds like the most anti Chinese government thing to do. Since when do they care about the opinion of their people? They place restrictions, and censor them whenever they're given the opportunity. No wonder China isn't all that stable, and most Chinese residents are finding ways around their restrictions they have in place.

The hashrate ATH based on bitinfocharts (https://bitinfocharts.com/comparison/bitcoin-hashrate.html#1y) took place in early May and dropped considerably before the China ban nonsense even began which as I have said at the time was mainly because of the price drop that has been going on around the same time (price has been dropping from April to May from $64k to $29k).

A harsh rate has a considerable effect on the price but its ultimate advantage is in the number of transactions being processed in the Bitcoin blockchain at a given period, in the last few days bitcoin hash rate increased to its highest since June when the hash rate dropped significantly due to the Chinese slim down on bitcoin miners.

It was badly affected in June because of the China fud within the Chinese and the Bitcoin miners ban and this has a direct effect on the hash rate of Bitcoin.

Eventually this has to be resolved because bitcoins will continue to be mined world wide and not necessarily it is China dependent.

Will bitcoin cross the all time high this year , this is the question yet to be answered and no one has the exact answer.

Wrong.

There are only certain affects that you can talk about:
1. The panic sell by weak hands. Which is in now way a "significant" effect. It is a weak one at best that may not even last long enough to be considered an "effect"!
2. In an unprecedented event where there is a ridiculously huge drop in hashrate. Something like 80% of it vanishing. And that's only because it has the potential to threaten bitcoin security.

Other than that the relationship between hashrate and price is that price has significant effect on hashrate not the other way around.

This is not affected by hashrate at all. In certain extreme scenarios when there is a big change in hashrate the number of blocks found every day could increase or decrease (depending on what happened to hashrate) but that would only last until difficulty adjustment which happens every 2016 blocks.

It wasn't last few days, it was much longer than that and it has been rising because price has been rising from $30k to $60k.
The Chinese thing was way before we started rising up from $30k or the hashrate starting to pick up.

the HASH rate has a considerable effect on the base value/cost.
there is a difference.

think of it like cost to farm cattle. this cost affects how much a farmer is willing to sell cows for. yes if the price is too high, meat suppliers get cows from different sources or meat from already slaughtered suppliers.
farmers wont sell for a loss so if the whole cow farm industry costs go up then yes it then bounces to affect the slaughter costs of providing butchered meat to the meat market and then affecting the meat market price.

but if we take the bitcoin price of $43-67k between october and december.
the base value/cost of the mining industry was at about $30k $39k for same period

basically if there ever was a mega dump in price. the amount of support and resistance not to sell would really push to not want to go below the base value. because no one wants to sell at a loss. and if the price went down to prices cheaper then the cheapest place on the planet to mine. everyone would prefer to buy, rather than mine to sell.

this base value is not the cost of all miners on the planet. it is however the base cost of the most efficient miners getting hardware at the cheapest wholesale cost and the cheapest electric available.
other countries and less 'partnered up' farms have higher costs and they provide support lines at other amounts above base, which as explained help the market price not reach the base value because higher cost miners would switch from mining to buying if the price dropped below their costs

EG
in october when market price was $67k, base value was $29k in places like iceland and regions of russia, .. yet different countries have different cost value bases. each adding to different support lines of where they will prefer to buy at above base
japan and denmark are currently in a buying spree mindset(costs above $60k). america/europe had a buying spree at ~$43k-$45k

..
japan and denmark see no need to mine. as its cheaper to buy nearly always.
europe/america play the game of jumping in and out of mining or buying depending on volatility. and places like iceland and russia/china will always mine because they have the lowest base cost to protect them from the whims of the market price

pooya envisions all miners are 100% hobby miners working from home reacting to the whims of the market price to determine their mining/buying choices. yet actual FARMS do not really switch off. they just choose when to sell coins when in profit. or if market price is equal to cost. they will buy more while they mine to hoard for later.

the hashrates 'volatility' is not 100% reactive to market prices. its actually more so below 30% reactive..
what you actually find when researching more into the mining/market paradigm is that the mining and coin acquisition costs put more then 70% pressure ON THE market price. to keep the price above certain levels when there are dips

however.. with all that said. the mining side does not affect the ATH or any of the reasons for new rises unpredicted quick rises that are not supported long term.

most of the highs are just emotional hype/speculation of drama and human decision.

in short.
mining affects where the bottom will flatten out to..
speculative emotion will affect where the volatile ATH top up to temporarily.
mining helps support new raised bottoms over time to give good supported long term prices

EG if it only cost from $20 to mine instead of over $20k.. the price would be more like $50 instead of $50k.

another short for you.
if all mining on the planet increased to where the cost of even the cheapest place on the planet to mine became $100k. the market price would be way over $100k and would, if there was a dip plateau at or above $100k.
base value of last 3 months has been over $30k-$39k and the price has never dipped below that

What an informative comment but the quoted paragraph will lead us to my comment, in your own opinion and according to the context of your writing you made it clear that the price of bitcoin does not rely on the hash rate and you went further to give a clear figurative analysis of bitcoin past market price and movement, what ate your takes on the outcome of bitcoin future price considering it present harsh rate and its potential effects on the entire market.

I think since government in china stopped her people mining of cryptocurrency and especially bitcoin they have shifted to another country that bitcoin is been legalize or adopted,

I want know how you still mine bitcoin, are you from country that have mining farm?

Nope, it wasn't like that at all.

The first drop that happened in April was because of the coal mine accident that triggered the entire region of Xinjiang. It's so obvious that the fact is not even debatable:
Accident on 15th (http://www.xinhuanet.com/politics/2021-04/15/c_1127335051.htm) and power shut down on the 16
16th of April approximative 167exa, 17th of April 121.
Of course all that info further acknowledging (https://www.theblockcrypto.com/linked/101866/xinjiang-coal-mine-bitcoins-hash-rate) that comes from poeple that mine in China, including poeple like Jiang Zhuoer who owns btc.top

The final ban news came in between 18-21 of May:
http://www.gov.cn/xinwen/2021-05/21/content_5610192.htm?ivk_sa=1023197a

https://talkimg.com/images/2023/06/12/AKBdd.png

It's so damn obvious, I'm really wondering how you're going to spin this.
The first drop is the cut caused by the April shutdown and then exactly the May 15-May30 period, and from the continuous going down till the end of July.

Oh, btw, if you really really realllllllly! want it to blame the drop on the price (and not the Americans)...


Price was 10k at 142 EH, profitability was 8 cents per TH/s in May Viabtc was paying 20 cents per TH/s, no sane miner anywhere on this planet would have turned anything off.

Want to know how China still has managed to fuck up mining for a while, they played again with the DNS and just two weeks ago, of course, you don't have to trust me, you can check Kano's post (https://bitcointalk.org/index.php?topic=5373202.msg58552050#msg58552050) or the news that viabtc has actually changed (https://twitter.com/ViaBTC/status/1465221871926857729) its domain name to avoid the great firewall of china.

Anyhow, hey, you know all this is because of the racist Americans, not the bitcoin loving democratic Chinese government.  ;D, who am I to contradict assuming with facts  ;D

But yeah, I will agree on point with you which is beyond clear as the sky.
Price affects the hash rate, not the other way around, the other is impossible.

This is good news to read as this means the bans in China that temporarily affected  bitcoin mining have resumed to almost their full capacity.! Btw more miners on the network also mean transaction fees are kept low. Also in the next few months should we not experience  any discruptions this should also mean all 21 million bitcoins will all be mined :).

There is no clear indication that point to miners in China resuming China have not eas it strick anti Bitcoin policy and it fight against Bitcoin is still on a high not. What have prompted the hike in the Bitcoin hash rate is not yet clear to so many bitcoin analysts.

The benefits of the China exodus are two-fold: (1) mining is increasingly done by greener countries, and (2) miners in the West, particularly the United States, are more likely to hold onto their freshly-mined bitcoin than the Chinese miners. This is great for long-term holders of bitcoin.

This is expected. I mean the recovery. I don't know, perhaps others are somehow surprised at the speed by which the recovery was achieved. Not only did the hashrate recovered after only a few months of the Chinese Bitcoin mining ban, it also created an ATH at almost 200 exahash per second. That's despite of the difficulty rising.

Well, of course, the world is wide. Miners could easily move to another country with welcoming arms. And they have more than a handful options.

Yes of course Bitcoin harsh rate has continued to make new all-time highs consistently within the last couple of days and the latest was within the last 24 hours when a new all-time high of Bitcoin hash rate of 250 EH-sc and this is the highest since the china ban on Bitcoin mining some months ago which lead to a drastic drop in the mining rate but with the recent development it seems miners are either finding a new environment for mining activities which have resulted in this new development.

Not sure if they would go to extreme lengths like that, after all they would have to get visas to go live somewhere else, which isn't exactly easy in a lot of countries. Although, I don't know what the extent of the ban was in China, was it a ban on the person operating inside of China or was it physically having the mining operation in China. I guess what I'm trying to allude to is; if it was a ban on having the mining operation inside of China specifically, then all they would have to do is find a place to operate it outside of China, i.e renting a warehouse in a European or American country or even a neighbouring country, and continue mining. Obviously, not everyone is in a position to do that, and that isn't something you can make happen right away, but it might be able to explain the somewhat quick recovery.