The Chinese repression has worked, enough. Hashrate collapses and mining moves
The Chinese government's fight against Bitcoin, with the absolute ban on institutional trading and the cut of electricity supplies to miners. This had a very strong effect on Bitcoin's hashrate, which hit a low in early July:
Here is the trend of the hashrate:
It is clear that the repression has had an effect, but that there is also a relocation of miners. The difficulty of the algorithm was reduced by 5% in early July, precisely following the decline in mining activity, but in any case the recovery, even if slow, is significant of a recovery in interest.
China currently accounts for only 46% of the world hash rate and, after a long time, has fallen into the minority position in world Bitcoin production. However, the cancellation of mining was far from complete. Internally there has also been a redistribution of the hash rate which has concentrated in Xinjiang, as the region is known for the exploitation of Uighur forced labor.
Let's see how the hash rate is redistributing itself among the different geocgraphic areas
As we see above all, the US has benefited from this redistribution of mining activities, along with Canada which has begun to have a detectable position. For now we do not see El Salvador, which, however, is a tiny state and its acceptance of Bitcoin as legal tender seems, for now, more of a provocation.
We know that there is a certain correlation between the value of Bitcoin and hashrate, so the resumption of the hash rate for relocation of miners should get us out of this mini winter of cryptocurrencies. Always, however, remembering that, in any case, it is an extremely fragile system and subject to high volatility.
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The article Chinese repression has worked, enough. Crolla hashrate and mining moves comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-repressione-cinese-ha-funzionato-abbastanza-crolla-hashrate-e-il-mining-si-trasferisce/ on Sun, 18 Jul 2021 10:29:46 +0000.