Bitcoin News: With the continued “hash migration” away from China, the Bitcoin hash rate has dropped significantly.
The largest infrastructure displacement in modern history is taking place—roughly 45% of the #Bitcoin mining industry is relocating continents.
Does this affect users?
— Documenting Bitcoin 📄 (@DocumentingBTC) June 26, 2021
According to Nic Carter of Castle Island Ventures:
Bitcoin mining is largely a self-sufficient industry. Banning mining hardly prevents BTC transactions or transfers. These are completely different concerns.
Peter Smith, co-founder and CEO of Blockchain.com, recently expressed his opinion that “It is really great news for the Bitcoin ecosystem” and continued:
You will see the diversification of mining operations around the world. We’ve been seeing this trend over the past two years as large mines have been built in Europe, the USA, and various other geographic areas. But this trend will now accelerate.
While several analysts agree that the declining hashrate need not be a cause for concern, they have also warned of the short-term implications of this in the long run. Chinese journalist Colin Wu said:
The hashrate of Bitcoin began to slowly rise, and some Chinese miners' machines began to land in Kazakhstan and North America, but it is expected that it will be difficult to return to 130E in half a year, unless China's policy is loosened. pic.twitter.com/EQp29iumOz
— Wu Blockchain (@WuBlockchain) June 26, 2021
Also, Zack Voell of Compass Mining noted that most of the top mining pools have lost at least 10 percent hashrate, and many have dropped between 30 percent and 80 percent.
Everyone is paying attention to bitcoin miners lately.
Hashrate is down.
Difficulty is down.
Price is down.
Here’s some data on what’s happening. $BTC
— Zack Voell (@zackvoell) June 27, 2021
As documented by Glassnode, miner revenue has dropped 80 percent since May.
2/ In fact, only 58 #Bitcoin blocks were mined throughout the entire day – which represents a drop of 60% from the baseline of 144 / day.
— glassnode (@glassnode) June 28, 2021
Difficulty setting for Bitcoin is at the door
An expected reduction in the imminent Bitcoin mining difficulty adjustment was another reflection of this development. According to Glassnode data,
The biggest drop in hash rate in the era of industrial mining. As of today, mining difficulty is expected to drop by an average of 25% this Friday.
The reduction in mining difficulty and hash rate likely reflected the extent to which the closure of mining farms in Xinjiang and Sichuan affected Bitcoin. Bitcoin miners who continue to work may have a larger share of mining rewards after the next difficulty adjustment.