Bitcoin (BTC) hash rate collapses down to nearly 91 EH/s because of a shutdown by Sichuan miners. Since the beginning of November, the hash rate of Bitcoin is continuously decreasing to its lowest levels following the pack up of mining operations in China.
The network hash rate of Bitcoin, a calculation of the computational horsepower consumed by it, has been recorded as 46% after its highest level in the middle of May. ‘Bitinfocharts’ mentions that the present hash rate of Bitcoin is 91.2 EH/s (per second quintillion hashes) which is nearly 50% of its highest as 171.4 EH/s slumped approximately six weeks back. It was also reported by Bitinfocharts that a fall had been seen in the profitability of Bitcoin from the highest mentioned spike of 0.449 USD per second, per tera-hash, and per day as a gradual decrease to the current level of $0.226. Such a low value was not touched by Bitcoin (BTC) in the previous eight months as it was first seen on 3rd November 2020. A higher hash rate signals a larger competition between the miners for validating the new blocks as well as enhancing the range of resources necessary to operate a 51% attack hence bringing more security to the network.
The root behind this collapse in the hash rate and the relatively less profit is credited to the ongoing crackdown on Bitcoin mining throughout the country continued by the Chinese authorities. The shutdown of the biggest mining pools in the Sichuan province of China was shared on social media last week. The local mining operations of Bitcoin (BTC) were ordered by the relative authorities to be terminated in the Ya’an city (a prefecture region in China’s western part) on 18th June. In the later period of 2019, it was estimated by CoinShares that more than 50% of the total Bitcoin hash rate was hosted by Sichuan that attracted the miners by presenting low-cost and sufficient hydropower.
The provincial authorities of Yunnan declared the order for the investigation of the supposedly illegal utilization of electrical energy by the companies and individuals being involved in the mining of Bitcoin.
Consequently, North America (especially Texas) is considered to be the safest region for the continuation of the mining services by the miners leaving China in a large number, making it the biggest mining migration.