Bitcoin hashrate plummets as mining farms shut down in China

Bitcoin Mining

The hashrate of the Bitcoin network has been on a steady fall since June 14. Most notably after the latest crackdown in China targeted miners in the Sichuan region of the country.

This is the second most dense province in China, and most miners are located here according to data from the University of Cambridge. Xianjiang being the province with the most hashrate.

As reported by a regional publication, the Sichuan Development and Reform Commission and Energy Bureau has announced that it would close the operation of 26 suspected cryptocurrency mining and virtual currency projects on Sunday.

Sichuan has become the fifth Chinese province that is shutting down cryptocurrency mining related projects. Prior to this development, Inner Mongolia and Yunan also ordered similar closures. Miners in Xianjiang and Zhundong were also forced to turn off their machines.

Statement from mining insiders point to situation being dire for big mining operations, as these are the most affected due to their inability to move their operations elsewhere quickly.

All this has meant that Bitcoin hashrate is now hovering just above 100 exahash per second (EH/s), almost 50% under its all-time high.

However, this crackdown on Bitcoin mining has spurted opportunities for mining in other locations. Countries that have abundance of cheap energy and power are inviting miners to set up shop, and some mining operations are already flocking to these regions.

In particular, Kazakhstan.


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