With power outages of Chinese miners, Bitcoin hash rate drops to an 8-month low

As China’s mining operations began to lose power, Bitcoin’s hash rate has fallen to its lowest level since early November.

Bitcoin’s network hash rate (a measure of its computing power) has fallen by 46% since it peaked in mid-May.according to bitmap, Bitcoin’s hash rate is currently 91.2 EH/s (quintillion hashes per second), which is close to less than half of the high of 171.4 EH/s released six weeks ago.

Bitinfocharts also reported that on the same pe, mining profitability dropped from a peak of US$0.449 per terahash per second per day to the current US$0.226.

BTC computing power has not been so low for 8 months, and it was below 90 EH/s on November 3, 2020 for the last time. Higher computing power means that the competition among miners in verifying new blocks is more intense, and it also increases the scale of resources required to execute 51% of the attacks, thereby making the network more secure.

The decline in computing power and mining profitability is due to the Chinese authorities’ continued crackdown on Bitcoin mining facilities across the country. Last weekend, pictures of the closure of major mining pools in China’s Sichuan Province circulated on social media.

On June 18, the relevant departments of Ya’an City, a prefecture-level city in western Sichuan—— Order the closure of local Bitcoin mining operations. At the end of 2019, CoinShares estimated Sichuan has more than half of the world’s hash rate and attracts miners with its cheap and seasonal abundant hydropower.

On June 12, the Yunnan Provincial authorities also issued a notice ordering investigations of individuals and companies suspected of illegally using Bitcoin mining.

According to CNBC report Nic Carter, a partner of Castle Island Ventures, published on June 15th, pointed out that Bitcoin’s hash rate is declining, and speculated: “It seems that installations across the country have been shut down.” In early May, Cointelegraph reported that, There are already signs that Bitcoin computing power is starting to leave China.

Carter predicts that over time, at least half of Bitcoin’s entire hash rate will leave China.

North America, Especially TexasDue to favorable legislation and a large amount of low-cost renewable energy, it has become one of the preferred destinations known as “big mining migration”.