Bitcoin hashrate decreased by 14% due to seasonal migration of Chinese miners
According to data aggregator Blockchain.info, bitcoin network hashrate has dropped by about 14% over the past week due to the end of the monsoon season in the Chinese province of Sichuan.
During this period, every year, most of the Chinese miners move their equipment to Sichuan to use the cheap electricity from local hydroelectric power plants. At this time, the province is becoming one of the largest centers for the extraction of cryptocurrencies, which accounts for about a fifth of the world’s computing power.
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According to Blockchain.info, since October 18, the average hash rate has dropped by 13.7% from 146.5 EC / s to 126.4 EC / s.
Analysts expect the shutdown of some of the equipment will also reduce the difficulty level at the end of this week by 7.4-8.8%. If these predictions are correct, then such a downturn would be the second largest decrease in difficulty, after a 16 percent pullback during the March crash.
, Shutterstock, graphic: Blockchain.info