Chad Harris is the CEO of Whinstone and he is on CNBC.
More than half of the world's miners were offline virtually overnight earlier this year due to the ChineseCrypto crackdown.
The recovery is measured by looking at the computing power of all the miners in the network. China has been the epicenter of this industry for a long time, with estimates showing that 70% to 75% of the world's mining happened there. After Beijing effectively banned the country's miners, more than 50% of the network's hashrate dropped off.
The network has completely cut back those loses, according to data from the website. The network's hashrate has increased in the last five months.
The network shrugged it off after China banned mining, according to Kevin Zhang of digital currency company Foundry.
The price of the world's most popular coin, which is down 30% over the last month, may be helped by the upward momentum in hashrate. Brandon Arvanaghi, who now runs a company that enables corporate treasury participation in criptocurrency markets, said that China's ban was a clear "buy" signal.
The biggest lesson for Arvanaghi is the fact that the stress test of the mining of the digital currency was relatively painless.
Six months later, the network emerged stronger than ever, despite an attack by a major superpower. How can anyone argue that it should not be banned again?
Many experts said that miners would come back online in North America after half the network went dark. The network was going to be restored to its previous high.
CNBC did not think the network would bounce back by the end of the year.
Marshall Long, the head of architecture at Rhodium Enterprises, a fully integrated bitcoin miner using liquid-cooled infrastructure, told CNBC he was surprised by the pace of its recovery.
He said they would be here in late January and early February. It would take another six to twelve months to get to Long's prediction.
The U.S. laid the groundwork to become a new mecca for mining, according to Zhang. There is a huge appetite for growth in the States.
Companies in the U.S. have been increasing their hosting capacity for years in order to get miners to set up shop in the U.S.
There wasn't much demand for bigbitcoin farms when the market crashed. The opening of the U.S. mining industry gave operators the chance to use cheap money to build up the mining industry in the States.
Mike Colyer, CEO of Foundry, said that the large publicly traded miners were able to raise capital to make purchases.
There has been a growth of mining infrastructure in America. He said that there has been a huge increase in mining operations looking to relocate to North America.
The capacity to plug in new gear was ensured by Core Scientific and other companies who kept building out their hosting space.
The mining industry in the U.S. was able to grow quickly because of maturing capital markets and financial instruments, according to Alex Brammer of Luxor Mining.
Covid was involved in a role.
Government money helped the U.S. mining companies during the global Pandemic.
The money printing during the Pandemic meant that more capital was needed.
People were looking for places to put their money. The appetite for large-scale investments has never been higher. A lot of that ended up in places outside of China.
The gamble has paid off. The U.S. is now the top destination for miners of the digital currency, beating out China for the first time.
The picture may not be simple.
Many miners who didn't have the resources to relocate stayed put in China, moving their operations underground according to multiple sources. Some went behind the meter to get power from sources like hydro dams. The authorities were less likely to notice that some people divided their mining operations into smaller farms.
Alejandro de la Torre, a miner who has spent years minting the digital currency all over the world, tells CNBC that the lesson here is the resilience of the global mining industry.
De la Torre said he was confident that any black swan events that may come to bitcoin mining in the future would be a non- event.
