Since April 15, the Bitcoin hash rate has dropped by more than 49% after reaching a high of 218 exahash per second. Regional reports have noted that the Xinjiang network in China is undergoing interruptions and security inspections.
Reports claim that disappearance in Xinjiang, China, has pushed the Hashrate of Bitcoin by 49%
At the time of writing, the Bitcoin (BTC) network has seen a 49% decline after reaching an all-time high (ATH). Data shows that the BTC hash rate climbed to a massive 218 exahash per second (EH / s) on April 15.
Almost immediately after the point, the network has started to turn down. When the hash rates began to fall, regional reporter Colin Wu (@wublockchain) tweeted about power outages in China.
‘The hash rate of bitcoin pools dropped within 24 hours. Antpool decreased by 24.5%, Btc.com decreased by 18.9%, Poolin decreased by 33%, Binance pool decreased by 20%, ”Wu tweeted. “The reason is that Northwest China is undergoing a complete eclipse for security inspections.”
The founding partner at Primitive Crypto, Dovey Wan, also spoke about interruptions the next day. “Xinjiang is facing a major power outage due to an explosion in a coal mine,” Wan said. noticed. ‘Bitcoin hash rate drops almost 30% immediately … It is expected to recover in a week. All data centers have also been closed, ”she added.
Wan prosecute:
Xinjiang [and] Sichuan collectively has more than 50% of the total [Bitcoin] hashrate. Hope [we] may in future have more widespread hashrates for resilience purposes.
Next week’s data may show an estimate of Xinjiang’s Hashrate share
The co-founder of blockchain data collector Coinmetrics.io, Nic Carter, also tweeted about the situation in China and the decline in hash rates.
‘The Xinjiang grid going down and its effect on bitcoin hashrates is what economists call a’ natural experiment ‘. [A] very useful source of data. Xinjiang is strongly based on coal, but not exclusively. There are large amounts of wind and solar power – from 2019 it will be 35% renewable. [Third] highest renewable share of all Chinese provinces (behind Gansu and Ningxia) (hydro hydro renewable for the use of this data).
Carter added that the drop next week could show how many hashish people live in the region. He said:
Based on the information we’ll be told next week, we’ll be estimating Xinjiang’s share of [the] BTC network (assuming we know for sure that the entire network is down – difficult to determine based on small reports).
Price and hash rate were always correlated.
This is the BTC price versus the current collapse of the hash rate (of the Xinjiang eclipse). pic.twitter.com/mywEZLHlA0
– Willy Woo (@woonomic) 18 April 2021
Meanwhile, a large number of people have said that the price drop is related to the fall in hash rates. The director of research at The Block Crypto, Larry Cermak, does not agree that the blame can be so easily thrown on the loss of hashpower. ‘LOL, if you think the drop in hashrate was the reason for the crash, you’re a ngi,’ Cermak said in response to Willy Woo’s tweet.
“For those who are looking for an explanation, corrections are of course after a big start. Weekends with low liquidity are perfect, a stupid catalyst to scare off traders, and we go. Markets were offered for Coinbase and it was disappointing. Not surprisingly, “said Cermak. added.
Network costs rise and price starts following Hashrate on Sunday night
The conversation surrounding BTC’s hashrate was a Popular topic on social media and forums. Compass Mining co-founder and CBO Thomas Heller also shared a source of the accident at the coal mine.
“Mining sites in Xinjiang have closed for inspections this morning – the network hash rates of most Chinese mining pools have dropped significantly,” Heller wrote. “This is related to the accident at the Xinjiang coal mine earlier this week,” he added.
On Saturday at 23:00 (EST), bitcoin’s price fell to a low of $ 51,541, but got lost again during Sunday’s early morning trading sessions. At the time of publication, at 7:30 a.m. (EST), bitcoin (BTC) is down 10%, exchanging hands for $ 54,848 per unit. The entire crypto-economy lost more than 8% last night at 23:00.
What do you think of the Bitcoin hash rates that fell by more than 49% over the weekend? Let us know what you think of this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Twitter, Coinwarz.com,
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