The Bitcoin network processing power can bounce back if miners move to a new place to other places, one analyst anticipates. The Bitcoin hashrate, the entire computational power took to make transactions safe on the blockchain. It decreased to its lowest level since November. It is very likely that it is a reaction of China’s recent crackdown on cryptocurrency mining. Based on the concerns over the network’s energy use up.
The seven-day average hashrate dropped to 129.1 million exahashes per second on Tuesday. It reached to its highest amount of 180.6 million exahashes per second in mid-May. Which is according to data from Glassnode. But, it is worth to mention that it’s still up from 105.6 million a year ago.
A higher hashrate means more assets committed to processing transactions on the blockchain and bigger and better resilience to strikes.
China Mining Crackdown
China’s Xinjiang Uygur Autonomous Region, the Inner Mongolia Autonomous Region and Qinghai province last week announced some other news.
They announced some plans to shut down some or all bitcoin mines. Yunnan province said it would crack down on illegal operations, and also officials in Sichuan province, another crypto mining hub, are negotiating to decide about some hard regulations.
China-based 1THash, one of the world’s 15 largest mining pools, lost nearly about 70% of its hashrate last week. Which it was according to Compass Mining Memo, citing data from MiningPoolStats.
Although, some analysts anticipate that the crash and decrease in the Bitcoin hashrate will be moved back finally as some miners go away from China for other locales.
“Zooming out, the size and rate of the latest decrease is consistent with other previous drops,” wrote Zack Voell, content director at Compass Mining. “After machines shuffle around the map and hash power relocates to new regions, the steady growth of Bitcoin’s hashrate should resume.”