Bitcoin’s hash rate dropped significantly by nearly 35% in one day. The computing power plummeted from 108 exahash per second (EH/s) yesterday to 69 EH/s today, which is the largest decline in the network. This may be the result of the status quo of Chinese miners. The data further estimates that the difficulty of mining will drop by about 23.7% next week.

Bitcoin hash rate plummeted

The Bitcoin hash rate, the amount of work protecting the Bitcoin network, dropped sharply last week. In just one day, the computing power dropped from 108EH/s to 69EH/s, a drop of nearly 35%. It is worth noting that the intra-day computing power record is not always reliable, and the 35% drop in a few days may be even lower.

This is one of the biggest drop in computing power of the Bitcoin network in the past few years, and it is affecting the operation of Bitcoin transaction confirmation time.

Bitcoin hash rate drops 35% intraday — mining difficulty drops 23%
One year chart of Bitcoin (BTC) hash rate on June 28, 2021.

According to the data collected by Trustnodes, the BTC network only produced 77 blocks yesterday. The block time of the Bitcoin network is defined as 10 minutes, so it should generate 144 blocks per day. This means that the average block time has stretched to nearly 20 minutes or more between intervals.

Bitcoin aims to adjust the difficulty to achieve a smoother block time. According to estimates by btc.com, this adjustment to be made on June 3 will reduce the difficulty by 23.7%. If it is higher than the percentile, if the conditions remain the same, it will be one of the biggest difficulty drops in the history of the Bitcoin blockchain.

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China cracks down on mining

This unusual decline in Bitcoin’s hash rate may be the result of the Chinese government’s recent crackdown on cryptocurrency mining operations. Several key provinces in the Bitcoin mining sector (Inner Mongolia, Sichuan, Yunnan and Xinjiang) have issued bans on mining, and important centers have been closed as a result. Although most miners are expected to relocate to other latitudes, the outflow will be slow and painful.

Even if countries such as El Salvador and cities such as Miami provide incentives to miners from China, relocating Bitcoin mines will not be easy. Thousands of ASICS must be shipped, electrical installations need to be adjusted and reviewed, and permits are required. This is why some people think that this situation will continue for some time until the miners relocate.

Although most analysts believe that most of the computing power is in China, there are still no reliable statistics on this issue. But these current figures clearly depict the global mining map before China’s mining ban.

What do you think of the latest Bitcoin hashrate drop and the next difficulty adjustment? Tell us what you think in the comments section below.

Image Source: Shutterstock, Pixabay, Wikimedia Commons, Coinwarz

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