The recent crypto crash did hit hard, and the factors at play were somewhat prominent and tangible, but some intangible elements also did play a heavy part in starting all of it. The prominent flashes that set off the recent crash are Elon Musk pointing fingers at the poor mining performance of Bitcoin and the use of fossil fuels such as coal which puts a heavy strain on the environment and increases the carbon footprint.
The second thing is China casting out all the miners and crypto exchanges out of operation, which put a hole into the value of Bitcoin and the consistent trading and transactions on its blockchain. But the intangible element that played its part in commencing a deadly crypto crash was the fall of Bitcoin’s hash rate.
Bitcoin’s Hash Rate is Finally Looking up, and the Same is Imminent for the Price Sooner or Later
Bitcoin’s hash rate suffered greatly as China put a hold on mining facilities operating there, and at that time, China was the largest provider for Bitcoin’s hash rate because of the intensive mining taking place there. As the hash rate kept on decreasing, hitting a low bottom, the crash started right there and then, and the value, along with the prices of the cryptocurrencies, came crashing down.
But since then, the performance of Bitcoin, along with its hash rate, has improved significantly. Rising from the lows of 106 exahashes all the way to 174 exahashes is not only an accomplishment but is pushing Bitcoin to achieve its lost place once again in the crypto market. The highest hash rate that Bitcoin has ever achieved is close to 198 exahashes before all of it came crashing down.
As of now, the European and American sites have taken control of most of the crypto mining, including Bitcoin hence the hash rate stability hitting the main tanks once again. China is still on the map when it comes to Bitcoin mining, but it has surely reduced in magnitude due to the newly imposed government regulations. It can be seen that Europe and America are getting more serious in building a massive infrastructure to even further the current mining practices for not only Bitcoin but also other cryptocurrencies.