With China shutting down farms, bitcoin hash rate drops to year-old levels

Bitcoin’s hash rate, as the processing power accumulated by network miners is known, has fallen to one of its lowest levels in a year, after falling below 100 EH/s.

Estimates from various sources refer to the hash rate from Bitcoin to a range of between 91 HD / s and 98 HD / s between Sunday 20 and this Monday 21 June. Depending on the source consulted, this is the lowest or second lowest processing power in the last 365 days.

According to data from coinwarz.com, Bitcoin’s mining power fell to 99 EH/s last October 27, while BitInfoCharts has a different calculation for that day, the lowest so far: 84 EH/s.

Regardless of whether or not there was a moment with less hash rate for the last 12 months, the truth is that the processing power of the Bitcoin network it has fallen considerably since mid-May. At that time, Bitcoin accumulated up to 171 EH/s of processing power, according to BitInfoCharts records.

Bitcoin hash rate has fallen to last October levels. Source: BitInfoCharts.

China against Bitcoin miners

Behind this fall in processing power in Bitcoin is largely the government of China. All the hash rate that has lost the network in recent weeks has been given after Beijing stepped up the persecution of miners, with up to 5 provinces affected to date.

For weeks, several reports have come to light, reflecting the departure of mining equipment from the Asian giant. Most of these teams would be destined for North America, where installed capacity for Bitcoin mining has been expanding, Crypto news reported in late May.

For its part, on Monday, June 21, a logistics company based in China confirmed the US chain CNBC transfer of 3 tons in equipment for Bitcoin mining, from the Asian country to Maryland, in the United States.

Continuous drops of Bitcoin hash rate

On June 10, bitcoin had its steepest hash rate drop since 2017. As this newspaper reviewed, Bitcoin recorded in one day a decline in processing power that hovered around 40%.

Hash rate calculations are not accurate, but are based on estimates based on the time it takes to mine Bitcoin blocks and the time of mining difficulty the network is in. Therefore, the figures often have discrepancies between one source and the other. However, they all agree on the steady decline of recent weeks.

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