The full extent of China’s crackdown on Bitcoin mining is becoming apparent. In the last 24-hours, the Bitcoin hash rate has dropped by 17%. This was after the Chinese government disconnected power to twenty-six mining farms in Sichuan province.
A drop in hash rate is not a good thing for Bitcoin if historical data is anything to go by. Back in April, a blackout in Xinjiang province caused the hash rate to drop by 30%. The result was a drop in the price of Bitcoin by $10k.
However, this time around, the drastic drop in hash rate has not significantly affected the price of Bitcoin. Despite the 17% drop in the hash rate, Bitcoin’s price has only dropped by 4%, and it’s still above $32,000.
This can be attributed to the uptake of Bitcoin mining by other countries across the globe. El Salvador is one of the countries that has wholeheartedly embraced Bitcoin mining. A few weeks ago, the country’s president announced that he had directed the country’s state-run power company to enable bitcoin mining using geothermal power.
North America seems to be embracing Bitcoin mining too. Recently, the mayor of Miami announced that the city was looking to woe Chinese miners facing a crackdown in their county. The formation of the Bitcoin Mining Council that aims to make American mining environmentally friendly is a boost.
Overall, Chinese miners seem to have taken a big hit, not Bitcoin’s price. In the last 24-hours, Chinese miner BTC.TOP lost 51% of its hash rate and fell to 15th in mining pool rankings.