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Bitcoin hashrate dips

KuCoin Hack

  • Bitcoin hashrate drops from 146 exahashes
  • End of rainy season in China is a possible factor

Bitcoin hashrate has recorded a massive drop in its recent rate. Bitcoin hashrate dropped from 146 exahashes a second to 113.

The hashrate had earlier risen around May this year but its recent drop could be attributed to some readily available reasons.

One of such reasons is the end of the rainy season in China. The end of this season has also led to the end of cheap energy in China too.

On a year to year basis, remote areas in China usually experience flooding which tend to fill the dams. Miners always take advantage of this opportunity by either running their gears at full capacity or by turning on their old gears.

With the end of the season, miners have to take incurred expenses into consideration. Miners would have to adjust their operations to fit into the current reality which they are facing. 

While the above explanation could explain a part, it could become void if one takes into consideration that the peak period of the high Bitcoin hashrate was in July, and presently, it is three months after.

Another plausible explanation could be that so many turned on their gears which led to the fall of some others who had been running their gears. Miners usually run their gears with the intent of maximising profit.

State actors now involved in Bitcoin hashrate mining 

Iran is the first country to throw its hat into Bitcoin hashrate mining. The country has introduced policies and regulations that will aid miners in the country.

Iran now sees Bitcoin as a means of carrying out international exchange. The country through its Central Bank plans to use Bitcoin to carry out its international transactions. The country is currently facing loads of sanctions from the United States.

Bitcoin mining, being a zero sum game, means any new hash comes at the expense of the current hash

Kamsi King

Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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