The mining company believes that the consequences of the mining ban in China have already been overcome and in the future, the Bitcoin hash rate is only expected to grow.
A report from Luxor Technologies says that hashrate, one of the main drivers of profitability for mining cryptocurrencies, will grow to around 185 EH / s per second in the fourth quarter.
“Fear, Uncertainty, Doubt (FUD) due to China’s control over Bitcoin is no longer evident, so Bitcoin’s hashrate will reach an all-time high.”
After China banned cryptocurrency mining in July, the hash rate and bitcoin rate declined. Miners left China and moved equipment to more mining-friendly countries such as the United States and Kazakhstan, so the hashrate and bitcoin price began to recover. In the future, the United States could become a key player in the Bitcoin mining market, Luxor said in a report.
The company emphasizes that the ban on mining cryptocurrencies in China provided a unique opportunity to enter the industry for companies that did not think about it.
The Luxor report also predicts that prices for the most expensive ASIC miners will reach all-time highs in the fourth quarter. Meanwhile, transaction income from commissions will at least double, and the “hash price” will rise to an annual high, but will not exceed $ 0.50 per terahash per second.
Luxor is not alone in seeing the rise in Bitcoin hashrate. According to Glassnode analysts, Bitcoin has practically recovered after 50% of the network’s power was turned off. Despite the tangible price correction, the difficulty of Bitcoin mining is growing rapidly. But the difficulty is still far from the May 2021 record.
The situation is darkened by the fact that in connection with the ban of cryptocurrencies in China, the largest mining pool F2Pool has suspended the provision of services for Chinese miners. But even if other Chinese pools follow his example, this will not have a significant impact on the market, since most of the capacity has already been exported from China.
Stay in touch! Subscribe to World Stock Market in Telegram.