Bitcoin mining difficulty saw a 16% decline, around midnight Sunday. Since the hash rate of the network dropped significantly. Even before China’s comment on the crackdown on Bitcoin mining.
Specifically, the data shows that Bitcoin’s mining difficulty was adjusted to 21.05 trillion, at a block height of 685,440. In other words, these data indicate a decrease of almost 16% in the mining difficulty, compared to the historical maximum of May 13.
In fact, Bitcoin’s average block production interval has already increased to 11.8 minutes between May 13, the latest mining difficulty adjustment date. And on May 21, when China’s State Council declared the need to crack down on Bitcoin mining.
Incidentally, the interval was 18% faster than the expected 10 minutes per time block. The average hash rate on May 13th dropped to 147 downloads per second (EH / s). And it has remained relatively stable even after China made the comments to ban Bitcoin mining.
Bitcoin mining difficulty decreases and Chinese miners seek to migrate
Due to government repression, some Chinese miners are taking steps to migrate. Specifically, to the hydropower center in Sichuan from the northern provinces of China.
However, due to low rainfall, power plants in Sichuan have been reducing the energy they release to energy-intensive industries like Bitcoin miners.
As a fun fact, it remains to be seen if the Sichuan government will react. And how it will react to the high-level policy signal from the State Council in terms of cracking down on Bitcoin mining activities.
In this regard, government officials from Sichuan energy regulators will organize a seminar. To assess the impact that the closure of local Bitcoin mining activities will have on excess hydropower.
According to the seminar call, the meeting is scheduled for June 2 in Chengdu, the capital of Sichuan province. As requested by the National Energy Administration.
Meanwhile, some Chinese Bitcoin miners are looking for energy capabilities abroad. To migrate your equipment out of China, and thus protect yourself against new regulations.
In this regard, Mustafa Yilham, who leads the overseas business at Bixin indicated. “In the last 48 hours, Chinese miners have already started to accelerate the migration process to other countries.”
Last 48 hours have been crazy.
So what will happen & what has already happened? Here are some initial thoughts:
1, This is first time such high ranking member of PRC declaring a “crack down on Bitcoin mining & trading”.
– Mustafa Yilham (@MustafaYilham) May 23, 2021
I close with this phrase from Peter Thiel: “I believe that Bitcoin is the first encrypted money that has the potential to do something like change the world.”