Over the course of time, as the demand and adoption rate for Bitcoin (BTC) has increased, its mining difficulty has also surged. However, the mining difficulty rate ended up taking a dip when the Chinese regulators decided to take matters into their own hands.
It was in mid-May when the Chinese regulatory authorities proceeded with cracking down on the entire cryptocurrency mining sector in the country. This resulted in several major cryptocurrency mining firms and farms going away instantly.
While the majority of the local mining firms shut down permanently, major and international mining companies moved their infrastructure to other countries.
As the relocation was going to take time, the overall mining difficulty for Bitcoin (BTC) took a huge dive. This was because prior to the Chinese regulatory crackdown, the China-based mining sector was mining around 75% of the global Bitcoin.
As the percentage was so high, it was bound to cause a huge dip in the mining difficulty for Bitcoin. The global hash rate for Bitcoin mining took a huge dip, but it only took the formerly China-based mining firms to relocate and set up their operations.
As of June 17, 2021, the mining activity analyzing firms started reporting a surge in mining difficulty for Bitcoin. This meant that the mining firms that had to move from China had started becoming operational from other countries.
Slowly and steadily, the mining firms have started mining Bitcoin, which is producing a high hash rate, thus, a surge in mining difficulty.
From June 17, 2021, until today, the cryptocurrency mining difficulty has experienced two major surges. These couple of surges on different occasions have helped Bitcoin mining difficult experience a 13.77% surge.
The stats show that since the second week of June, it has happened for the first time that the terahash rate for Bitcoin has crossed the 15 terahashes (TH) rate.
According to data, the next adjustment for Bitcoin mining is hopefully going to take place on August 2. As a result of the expected adjustment, the new mining difficulty for Bitcoin would cross the 15.63 terahashes (TH) rate.
Before the demise of the cryptocurrency mining farms due to the crackdown in China, the overall mining difficulty had crossed the 25 terahashes (TH) rate. This goes to show that the overall mining difficulty for Bitcoin is still far from reaching its old rate.
The Chinese crackdown on the mining firms had brought the competition rate for solving the problems during Bitcoin mining to a very low figure. This led the miners based outside of China to generate huge profits due to low mining difficulty.
Statista, one of the major data analyzing firms in the crypto-industry revealed that due to the Chinese crackdown, the mining difficulty had been reduced by 46%.