As unfavourable situations for miners in China mount, the Bitcoin hashrate is dropping drastically. Its current rating is now at a level last observed in July 2019. The hashrates of several mining pools have nearly halved as events unfold.
Blockchain.com’s data reveals that the current hashrate sits at about 58 EH/s (Exhashes per second). As a reflection of the impact, with the next BTC adjustment coming on Friday, the mining difficulty would slip negatively by 25 percent. Mining pools like Antpool and Poolin are affected and have lost 50 percent of their hashrates in 30 days.
Bitcoin Hashrate. Source: Blockchain.co
Chinese Miners are on exodus, while some are choosing to migrate to other favorable regions and continue their operations, others are taking to deserting the mining sector. By the end of June, over 90 percent of Chinese miners are expected to shut down operations. Inner Mongolia and Sichuan are cutting down on the electricity of these mining pools.
The current state could take a while to settle. Miners are opting for potentially accommodating locations like Texas, Canada, Florida, and Kazakhstan. However, till major Bitcoin pools resume again, the hashrates of Bitcoin would continue to wear down.
The Chances Of Bitcoin’s Recovery
Bitcoin is a breakthrough cryptocurrency. It is the first-ever and the most valuable. Despite its uniqueness, the leading crypto asset is under intense pressure and antagonism from various governments.
It might take a while for Bitcoin to reclaim its initial values, however, it’s necessary to note that it might not get so much worse. Crypto enthusiasts are still holding onto Bitcoin as it didn’t do so badly following its ban by a major economic power like China.
Moreover, Twitter’s Jack Dorsey and Tesla’s Elon Musk will be working together to educate Bitcoiners as more institutional entities stake on the leading crypto.