Bitcoin’s hashrate has gotten to a very low level of about 91EH/s since the beginning of November as a result of Chinese miners closing down.
It was reported that about six weeks ago, around May, BTC’s hashrate peaked to 171.4 EH/s noting that currently, there has been a 46% decline from 91.2EH/s.
It was also reported that there has also been a slump in profit made from $0.449 to $0.226.
This is the lowest BTC’s hashrate has been in eight months and the last time it went below 90 EH/s was 3rd November. When there is higher harshrate, there’s more competition among miners which helps in validating new blocks, also, networks are safer.
The cause of the decline in hashrate and profits from mining has been attributed to Chinese government shutting down mining facilities all over the country including notable mining pools in Sichuan region. Images to this effect were shared on social media.
CoinShares reported that more than half of global hashrate was mined in Sichuan because of it’s hydro power that was inexpensive and available at all times. In the Ya’an City of Sichuan, the government ordered all mining operations to close down on 18th of June.
In the Yunnan Province of China, the authorities announced that companies or individuals involved in BTC mining will be probed over the alleged use of electrical power illegally.
On 15th June, CNBC reported that Nic Carter, a partner in Castle Island Ventures, speculated that Bitcoin facilities are being shut down all over China. Also, Cointelegraph equally reported in May that it appears that hashrate in China was declining.
Nic Carter believed that with time, at least half of global BTC’s hashrate will no longer be in China. On the other hand, North America, especially Texas is experiencing a high influx of miners because of the abundance of cheap renewable energy and legislations that are favorable.
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