China’s strict encryption regulations mean that many Chinese companies within Bitcoin are closed (Bitcoin) Mining ecosystem. The sudden disappearance of Bitcoin miners from the grid caused the hash rate to drop. Hash performance, the cumulative computing power of the Bitcoin network, dropped from a record high of 180 exahashes per second (EH/s) to 84 EH/s in just 21 days.
Although the decline in computing power is directly attributable to the decline in the number of miners in China, Blockchain.com Explorer data Suggest Since June 3, the difficulty of mining has been steadily increasing.
Since the decline, the hash rate has increased by 21.38% due to the return of migrating Chinese miners who have begun operations in other regions. The resulting adjustments to the difficulty of Bitcoin mining translate into higher computational costs. As more and more miners previously in China come back online, the operating costs of global bitcoin miners will continue to increase.
Given The initial boycott by the Chinese government, Miners are always looking for countries that can provide clear regulation and reduce electricity costs.
On the pretext of protecting citizens from high-risk investments, the Chinese authorities have forced crypto companies to highly restrict their crypto portfolio products or move overseas. As Cointelegraph reported earlier this monthWang Juanna, member of the China OECD Blockchain Expert Policy Advisory Committee, said:
“We see the cryptocurrency market entering the path of’de-sinicization’ – first trading, and now computing power, based on a series of stronger measures taken by Beijing last week against cryptocurrency and Bitcoin mining. “
At the peak of September 2019, China contribute Reach 75.53% of the global Bitcoin hash rate, and Steady downward trend before the ban on mining Was imposed. Although China’s current computing power contribution is 46.04%, the global share of the United States has expanded to 16.85%.
Cointelegraph also covers jurisdictions including Russia, Kazakhstan and Canada By providing a home for migrating Chinese miners, they have seen more involvement in encryption.As Many experts agree, China’s signal to break the mining monopoly Positive action Towards a decentralized development of the crypto ecosystem.