Bitcoin Hashrate dropped 17% due to China’s crackdown on crypto

Bitcoin Hashrate dropped 17% due to China’s crackdown on crypto

On June 18th, Sichuan officially issued a document requesting power generation companies are required to immediately stop supplying power to any virtual currency mining and report the relevant situation on the 25th.

We are starting to see the effects of this decision as the amount of mining power backing Bitcoin fell by nearly 17% in the last day. Sichuan province ordered 26 large mining projects to be monitored and shut down.

As I was writing yesterday, the drop of the hashing power can make Bitcoin block production longer.

The future of Chinese crypto mining doesn't look great. It's worth noting that most of the Bitcoin network's hashing power,  almost 75%, is from China. With the current crackdown, most of that power will be moved outside; we could see more renewable energy used in the future mining operation. Even the Deputy of Paraguay is inviting some miners to his country.

Yesterday I wrote a more extensive article on the current crypto affairs happening in China.

China’s crackdown on cryptocurrencies continues
With the recent ban of many cryptocurrency accounts on Weibo and the increasing crackdown on bitcoin mining, new restrictive policies are being enforced. Along with crypto trading, China’s carbon neutrality goal has raised concerns once again this month. With China celebrating the 100th birthday of …

Thanks for reading, and if you like my writing, you can subscribe to my blog to receive the daily newsletter as I'm currently in the middle of 100 days of blogging challenge. Subscription box below 👇

If the newsletter is not your thing, check out my Twitter @adrianhetman, where I post and share exciting news from the Blockchain world and security.