Bitcoin hashrate dips to about 91 EH/s as Sichuan miners shut down shop.
As mining operations in China begins disconnection, Bitcoin’s hashrate has dropped to its lowest levels since early November
The hashrate of Bitcoin’s network, a measure of its computing power, has fallen 46% since its peak level in mid-May. As shown on Bitinfocharts, Bitcoin hashrate is now 91.2 EH/s (quintillion hashes per second), close to half of its 171.4 EH/s high published less than six weeks ago.
A decline in mining profitability of a peak of US$0.449 per day per terahash per second at present levels of US$0.226 over the same period was also reported by Bitinfocharts.
Bitcoin hashrate has not been this low for 8 months, last grovelling below 90 EH/s on November 3, 2020. A higher hash rate implies greater competition among miners to approve new blocks, also raising the scale of resources needed to carry out a 51% attack and consequently making the network more secure.
The drop in Bitcoin hashrate and mining returns resulted from the continued clampdown from Chinese authorities on Bitcoin mining facilities throughout the country. Over the weekend, images of major mining pools in China’s Sichuan province being shut down were shared on social media.
“We gonna witness a history in bitcoin mining tonight, all mining farms (about 8m kw electricity load) will shutdown at 12pm Beijing time tonight, Harare rate already dropped significantly after sichuan gov announce shut down bitcoins mining farms in Sichuan.” pic.twitter.com/xRfqMCgWY1— Molly (@bigmagicdao) June 19, 2021
Authorities in Ya’an City — a prefecture-level city in the western part of Sichuan — ordered local Bitcoin mining operations to shut down on June 18.
Also, In late 2019, CoinShares estimated that Sichuan hosted more than half of global hash rate, attracting miners with its cheap and seasonally abundant hydropower.
Furthermore, the Yunnan provincial authorities also released a notice ordering an inquiry into the alleged illicit use of electrical power by individuals and companies taking part in Bitcoin mining on June 12.
As published by CNBC on June 15, Castle Island Ventures partner Nic Carter noted Bitcoin’s hashrate was declining, speculating: “it appears likely that installations are being turned off throughout the country.”
Cointelegraph reported that there were already signs that Bitcoin hashrate was starting to leave China at the beginning of May. Carter predicted at least half of Bitcoin’s entire hashrate will leave China over time.
North America, the state of Texas, in particlar, has evolve to be one of the top destinations for what has been nicknamed the “great mining migration” due to conducive legislation and a plethora of low-cost renewable energy.