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Since April 15th, the hash rate of the Bitcoin network has fallen by more than 49% after reaching an all-time high of 218 exahash per second. The regional report pointed out that in China, the Xinjiang power grid is undergoing power outages and “safety inspections”.
At the time of writing, the Bitcoin (BTC) network hash rate has dropped by 49% after reaching an all-time high (ATH). Data shows that on April 15, the hash rate of BTC climbed to 218 exahash per second (EH/s).
Almost immediately thereafter, the network hash rate began to spiral downward. When the hash rate started to drop, regional reporter Colin Wu (@wublockchain) Tweeted about a power outage in China’s power grid.
“The hash rate of Bitcoin mining pools plummeted within 24 hours. Wu said that Antpool was down 24.5%, Btc.com was down 18.9%, Poolin was down 33%, and Binance was down 20%. Tweet. “The reason is that China’s northwestern region is undergoing a complete blackout for safety inspections.”
Dovey Wan, the founding partner of Primitive Crypto, also talked about the power outage the next day. “Xinjiang is facing severe power outages due to coal mine explosions,” Wan Remarks. “The Bitcoin hash rate immediately dropped by nearly 30%… It is expected to recover within a week or so. She also added that all data centers have also been closed.
Wan carry on:
Xinjiang [and] Sichuan accounts for more than 50% of the total [Bitcoin] Hash rate.hope [we] For resiliency purposes, there can be more distributed hash rates in the future.
Nic Carter is also the co-founder of the blockchain data aggregator Coinmetrics.io Tweet Regarding the situation in China and the decline in hash rate.
“The collapse of Xinjiang’s power grid and its impact on Bitcoin’s hash rate is called a “natural experiment” by economists. [A] Very useful data source. Xinjiang is dominated by coal, but this is not entirely the case. The amount of wind and solar energy is huge-as of 2019, renewable energy accounts for 35%. [Third] Among all provinces in China, the share of renewable energy is the highest (after Gansu and Ningxia) (for this data, hydropower is renewable).
Carter added that the drop next week may indicate how much hash rate there is in the area. He says:
Based on the amount of data next week, we will be able to estimate the proportion of Xinjiang. [the] BTC network (assuming we are sure that the entire grid is closed-it is difficult to judge based on insufficient reporting).
Price and hash rate have always been related.
This is a comparison between the BTC price and today’s hash rate collapse (from the Xinjiang blackout). pic.twitter.com/mywEZLHlA0
-Wiley (@woonomic) April 18, 2021
At the same time, many people say that the price drop is related to the drop in hash rate. Larry Cermak, head of research at The Block Crypto, believes that it is easy to blame the loss of hashing power. “Lol, if you think the drop in hash rate is the cause of the dump, then you are ngmi,” Cermak Say In response to Willy Woo’s tweet.
“For those who are looking for some kind of explanation, after a lot of attempts, it is natural to correct. The weekend with low liquidity is perfect, some stupid catalysts surprise traders, and then we are gone. Market bidding It was also disappointing in the end after Coinbase. It’s not surprising.” Add to.
The discussion about BTC hash rate has always been hot topic On social media and forums. Thomas Heller, the co-founder and CBO of Compass Mining, also shared the cause of the coal mine accident.
Heller wrote: “Mining farms in Xinjiang were closed this morning for inspection-the hash rate of most Chinese mining pools has dropped significantly.” He added: “This is related to the accident in Xinjiang coal mines earlier this week. .”
At 11:00 pm EST on Saturday, the price of Bitcoin fell to a low of $51,541, but recovered some losses in early trading on Sunday. At the time of publication, at 7:30 am Eastern Time, Bitcoin (BTC) was down 10%, trading at $54,848 per unit. Since 11:00 last night, the entire crypto economy has fallen by more than 8%.
What do you think of Bitcoin’s hash rate plummeting over 49% this weekend? Let us know your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Twitter, Coinwarz.com,
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