26 Bitcoin mining centers (BTC) in Sichuan, one of China’s counties with the highest mining activity were reported to have been ordered to close by local authorities yesterday.
Indirectly making over 90% or a third of global Bitcoin mining capacity will be shut down as regulators in China’s northern and southwestern provinces also take similar drastic measures.
Bitcoin hashrate rates also received the impact of the closure of mining activities in Sichuan.
Based on records, the hashrate rate has declined 46% since mid -May to a low of 91.2 EH/s, almost half of the 171.4 EH/s high recorded nearly six weeks ago.
The last time the BTC hashrate was at its lowest level was on November 3, 2020.
Hashrate refers to the speed at which a miner performs a proof-of-work (PoS) calculation per second. The higher the hashrate, the more blocks are mined - meaning the higher the chance for individual miners to complete the block and receive the newly mined Bitcoin.
The height of the hashrate also guarantees network security from 51%attacks.
The solution to the issue of mining restrictions in China is to move abroad. As the response from Sichuan county insiders: "We are trying to find mining opportunities abroad to put mining devices there."
North America and Russia are among the countries that still accept crypto, at least for now.
At the time of writing, BTC is increasingly critical with a current value of $ 32,901, down more than 7% in 24 hours.
