Written by Yogita Khatri Translated by Tanker
Bitcoin hashrate, the amount of computing power it takes to mine the cryptocurrency, has dropped by nearly 50 percent compared to just over a month ago.
On June 18, the relevant departments of Sichuan Province issued a notice requiring power generation companies to conduct self-inspection and self-correction, immediately stop supplying power to virtual currency mining projects, and fully implement the national clean-up requirements. The notice also requires that the governments of all cities (states) immediately carry out dragnet-type investigations, and the virtual currency "mining" projects found in the investigations must be shut down immediately, and the status of the closures must be reported before June 25. Namely approved the virtual currency mining project.
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The above data is taken from The Block Research, BTC.com
In fact, the country has taken action since last month, shutting down bitcoin mining activities in many regions, including Xinjiang and Sichuan, and then the overall bitcoin computing power began to drop sharply. You must know that the Bitcoin computing power in Xinjiang and Sichuan alone is estimated to reach 50 EH/s, accounting for about 30% of the total Bitcoin computing power.
According to related reports, the reason why Bitcoin mining has taken such a strong restrictive action is mainly to reduce the carbon footprint and the impact on the environment.
According to data from the Cambridge Bitcoin Electricity Consumption Index (Cambridge Bitcoin Electricity Consumption Index), as of April 2020, approximately 65% of global Bitcoin mining activities occurred in China. However, as The Block has previously reported, China’s dominance of the bitcoin mining market has actually eroded significantly in recent months. According to relevant market participants, China now accounts for less than 50% of the total bitcoin computing power.
As the "strike" on the Bitcoin mining industry is further intensified, it is expected that the share of domestic Bitcoin computing power in the entire network computing power is likely to decline, and the sharp drop in Bitcoin prices in recent weeks is also a result of the decline in computing power Another main reason.
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The above data is taken from The Block Research, BTC.com
On the other hand, Foundry USA, the Bitcoin mining subsidiary of Digital Currency Group, which opened to the public in March 2021, has seen its hash rate increase by about 15% over the same period. its mining pool business.
Last week, Digital Currency Group founder and CEO Barry Silbert tweeted that the Foundry USA mining pool had chosen the "perfect time" to launch, and also hinted that the pool could be very popular. It will soon become the top five bitcoin mining pools in the world (currently the Foundry USA mining pool ranks seventh).
In addition to the United States, Kazakhstan, Russia and Georgia seem to be very attractive to Chinese miners, and they are trying to relocate their mining machines to these regions to resume Bitcoin mining.
