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December 5, 2022
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Bitcoin hashrate drops 17% overnight after China’s mining crackdown

Bitcoin hashrate declined after authorities in China’s Sichuan province cut power to 26 mining farms.

The amount of mining energy supporting Bitcoin has dropped 16.94% in the last 24 hours after authorities in China’s Sichuan province turned off 26 mining farms.

Falling hashrates can affect the price of Bitcoin. In April, outages in Xinjiang cut the Bitcoin hashrate by 30% and contributed to a $10,000 drop in the price of Bitcoin.

This time, Bitcoin dropped 5.71% to $34,205. This is a less pronounced drop than many of the top 20 currencies in market value.

Data from BTC.com shows that the BTC.TOP mining pool has dropped from 11th to the 15th largest mining pool after losing 51.39% of its hashrate. The largest pool, Antpool.com, lost 14% of its hashrate.

The future of Bitcoin mining in China looks bleak. It’s a big deal for Bitcoin; by some estimates, around 65% of all the computing power that supports the Bitcoin blockchain comes from China.

Sichuan, in particular, is very popular for much of the year. Miners extract from excess cheap hydroelectric power generated by large dams.

For the rest of the year, many miners migrate to Xinjiang, where the cold climate favors them.

But not anymore. Xinjiang ordered several crypto mining farms to close on June 9 – one of several closure orders across the country.

China thinks Bitcoin mining is a huge waste of energy and doesn’t produce anything useful. Supporters say one of the uses of the payments network is to help people bypass surveillance states like China.

Source: decrypt

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