Bitcoin’s sophistication drops as miners shut down in China

June 14, 2021


Bitcoin's sophistication drops as miners shut down in China

The first cryptocurrency's mining difficulty fell 5.30% to 19.93 T in the latest recalculation. The BTC.com service predicts a further 5.46% drop to 18.84 T.

Bitcoin's complexity depends on its network hash rate, which has fallen 21% to 135 EH/s in the past month, according to BitInfoCharts.

The decline in hash rates could be linked to the shutdown of mining operations in China. China's largest mining pool, AntPool, fell by more than 25% on 9 June. Hash rates of other Chinese pools fell by 11-30%.

Against this backdrop, the interval between two first cryptocurrency blocks mined on the network was almost two hours on 11 June.

On 9 June, bitcoin miners at Shandong Economic and Technological Development, based in Changji Prefecture, Xinjiang province, were ordered by local authorities to cease operations immediately.

Inner Mongolia, Qinghai and Sichuan provinces have joined the fight against first cryptocurrency mining. Last week, media reports emerged about plans by the Yunnan provincial government to ban mining as well.

Journalist Colin Wu refuted the latest information. He described the documents circulated by the media as false and said the miners had not left the region because Yunnan mainly uses renewable energy.

This is inaccurate and should be verified by multiple miners in China. The government documents circulating on the Internet today are false. Yunnan mainly uses green hydropower, and the miners have not stopped all of them for the time being. https://t.co/5twaWS55LY

— Wu Blockchain (@WuBlockchain) June 11, 2021

According to China Star Market, the Yunnan Energy Bureau has required reporting agencies to inspect miners by the end of June to identify those using electricity illegally.

Some of the province's hydropower plants supply power directly to businesses, bypassing the municipal grid. This reduces the operating costs of the farms, obviating the need to pay additional tax.

According to a notice cited by the publication, authorities will cut off power to miners who have avoided paying their bills or used it illegally.

According to the South China Morning Post, Yunnan is the fourth-largest province in China in terms of hashrate produced. 


You can find professional bitcoin lifestyle review here.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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