On June 28, the average estimated number of hashes per second produced by miners in the network was 61 EH/s, down nearly 70% from the historical peak of Bitcoin’s net-wide computing power (197.8 EH/s) on April 15, which come back to mid-2019 levels.
Previously, the hashrate of bitcoin in the network reached an all-time high of 197.8 EH/s in April 2021 after nearly two years of gains from around 70 EH/s in June 2019. However, in the last two months, it fell to around 70 EH/s.
China’s Mining Crackdown
The country’s central bank has reportedly called for Chinese banks and payment institutions to cease crypto-related business. Simultaneously, Bitcoin miners have been forced to shut up shop in the provinces of Yunnan, Inner Mongolia, Sichuan, Xinjiang, and Qinghai, causing Bitcoin’s hashrate to plummet and a collapse in crypto prices. BIT Mining itself received notice that the power supply to its Ganzi Changhe Data Center in Sichuan would be suspended on June 19, according to its statement. As the last “hope” of miners——Sichuan is also in a comprehensive clearance of the mine. So far, China’s major crypto mining provinces have closed their doors to miners.
Bitcoin’s Hashrate Is Rapidly Moving from China to North America
According to BTC.com, The U.S.-based Bitcoin Pool Foundry USA climbed to the top five in the world, accounting for 11.9 % of the hash rate. Bitcoin’s hash is rapidly shifting from China to North America. AntPool, which used to be run by Bitmain, a leading Chinese mining hardware equipment maker, has fallen to 6.7 per cent of total power.
With tighter regulation, small and medium-sized miners may incurring loss may not be a big deal, but for big miners with tens of thousands of machines, it is not to mention that they will need to find suitable sites to build new mines. As a result, 50% to 60% of Bitcoin’s hash rate will be leaving China.
Central Asia, Eastern Europe, North America, and Northern Europe are important alternatives for sea miners.
Chinese Bitcoin mining firm BIT Mining has announced that it has delivered its first batch of 320 mining machines to Kazakhstan. In a release accompanying the announcement, the firm revealed that it expects its machines to be up and running by June 27, bringing a theoretical maximum hash rate capacity of 18.2 PH/s online. A second and third batch of 2,600 machines in total is expected to arrive in Kazakhstan by July 1, with the company’s remaining mining machines going to overseas data centers “over the coming quarters.”