The Bitcoin network hashrate dropped into a low after China forced the closure of a string of Bitcoin mining pools. However, this is simply a short-term shift.
According to Coindesk, the hashrate of this whole Bitcoin network has hit its lowest level since November 2020. This could be caused by an attempt to crack down on cryptocurrencies from the Chinese government.
On June 18, the Sichuan government just decided to shut 26 Bitcoin mining pools. This is the final important Bitcoin mining centre in China to make the decision, following many centers in Xinjiang and Inner Mongolia were closed after a crackdown ordered in May.
The typical hashrate within the last seven days fell to 129.1 EH/s on June 15, much lower than May’s 180.6 EH/s, based on Glassnode. This number is still greater than 105.6 at the end of 2020.
The greater the hashrate, the harder it’s to mine Bitcoin. The difficulty index for Bitcoin mining will be based on the complete hashrate of networked miners. Every 2,016 cubes, or about 2 weeks, the network will self-adjust the problem to be sure that the block processing speed is always kept at a normal level, not changing much.
In other words, when an increasing number of machines with higher processing power join the network, the hashrate increases and vice versa. China’s ban has made Bitcoin simpler to “mine” than it was in ancient 2021, but essentially mining still needs specialized machines and consumes more power than 2020. Getting Bitcoin only a bit easier.
Last week, the authorities of the Xinjiang, Inner Mongolia and Qinghai states of China announced plans to close the majority of the Bitcoin mining pools. Yunnan state announced it will crack down on illegal activities, and Sichuan authorities are discussing how to cope with it.
1THash, among the 15 biggest Bitcoin mining pools in the entire world, lost almost 70 percent of its own hash speed last week, based on Compass Mining Memo. However, some analysts forecast the hash rate will go back to exactly the same as Bitcoin miners “migrate” from China to a safer state.
According to Zack Voell, content manager Compass Mining, the rate and value of this fall is just like previous drops, meaning once Bitcoin miners have settled into a new place, the increase of the hash speed will return to normal.
Maybe you’re interested:
Join our station to upgrade the most useful news and information in:
According to Zingnews
Compiled by ToiYeuBitcoin
