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BTC $38575.94 (2.28%)
ETH $2639.44 (6.58%)
USDT $1.00 (-0.0%)
BCH $529.63 (0.52%)
BSV $136.91 (1.39%)
LTC $138.62 (1.55%)
BNB $328.65 (2.61%)
ADA $1.36 (2.76%)
DOGE $0.19 (1.26%)

Bitcoin Hashrate Fall After China Mining Crackdown

Bitcoin Hashrate Fall After China Mining Crackdown
  • Chinese authorities cut power on mining farms in the Sichuan province.
  • Sichuan has become the fifth province to announce a crackdown on BTC mining.
  • The mining difficulty of Bitcoin is expecting a record drop of over 11%.

China has continued to crack down on cryptocurrencies. It happened when Sichuan asked energy companies to stop providing power to 26 Bitcoin mining farms in the region.

Besides, after a meeting between China’s Science and Technology Bureau and the Sichuan Ya’an Energy Bureau, they informed Bitcoin miners in the region that they must stop operations by June 25.

Sichuan, a region in the southwest of China, has been popular with Bitcoin mining farms due to the abundance of cheap hydroelectricity produced during the rainy season, which lasts for up to five months during the summer.

Moreover, power firms in the province will close until further notice, as they told the miners. Energy firms started to cut their power by June 20.

Since China started to toughen its stance on cryptocurrencies, Bitcoin’s price has declined, suffering from its worst crash.

According to the Cambridge Center for Alternative Finance, China accounts for around 65% of the Bitcoin network’s Hashrate. However, following Sichuan’s new progress in halting mining operations, mining power backing Bitcoin fell almost 17%.

In comparison, the power interruption in Xinjiang that occurred in April led to a Bitcoin hash rate drop by 30%. In fact, it was making a $10,000 drop-in BTC price. According to BTC.com data, the Bitcoin mining difficulty is supposed to expose an 11.18% drop. Also, Bitcoin mining difficulty includes how hard it is for miners to build a new block on the blockchain. Besides, it already witnessed two negative adjustments in the past month, as it dropped from 25.046 trillion to 19.932 trillion.

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A Computer Engineering graduate who writes news focuses on cryptocurrency-related and blockchain technology. He is enjoying using his skills to contribute to informing people of the exciting technological advances that happen every day.