Bitcoin Hashrate Drops 17% Overnight After China Crisis

The amount of mining power backing Bitcoin has dropped 16.94% in the last 24 hours after authorities from China's Sichuan province pulled the plug on 26 mining companies. Falling hash rates could hurt Bitcoin's price. In April, outages in Xinjiang reduced Bitcoin's hash rate by 30% and contributed to a $10,000 drop in price. This time, Bitcoin is down 5.71% to $34,205. This is a less pronounced drop than most of the top 20 cryptocurrencies by market cap. Some mining pools were more affected by the closures than other diversified pools. Data from BTC.com shows that the BTC.TOP mining pool has dropped from the 11th largest mining pool to the 15th largest mining pool after losing 51.39% of hash power. Antpool.com, the largest pool, lost 14% of the hash rate. The future of Chinese Bitcoin mining looks bleak. A big problem for Bitcoin; By some estimates, about 65% of all computing power supporting the Bitcoin blockchain comes from China. Especially Sichuan is very popular for most of the year. Miners take advantage of the extremely cheap hydroelectricity produced by huge dams. For the rest of the year, many miners flock to Xinjiang, where cold weather cools the miners and feasts on coal-fired energy sources. This saves on electricity costs. But not anymore. Xinjiang ordered the shutdown of several crypto mining companies on June 9 – one of several shutdown orders nationwide. China considers Bitcoin mining a huge waste of energy and does not provide anything useful. Proponents argue that one of the ways the payment network is used is to help people move in surveillance states like China. Business, BTCRead more

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