- Bitcoin hashrate continues to drop as miners search for favorable mining regions.
- Currently, the network hashrate sits at 107M TH/s.
Bitcoin hashrate has been nosediving over the past few days. As of October 26, Cryptopolitan reported that the Bitcoin network hashrate significantly dropped to 133M TH/s, as the cryptocurrency’s price began to peak. The drastic drop may have been attributed to the end of the rainy season in China; however, it also shows the other side of having most of the network hashrate significantly dominated by one country.
Bitcoin hashrate kept dropping
To put things in perspective, Bitcoin hashrate further dropped from the October 26 record to 113M TH/s as reported on November 1. A glance at Blockchain.com, a Bitcoin network explorer, confirmed a further drop to 107M TH/s. Such a hashrate score was last seen on February 17, where it precisely dropped to 107.217M TH/s according to Blockchain.com
As explained earlier, the primary reason behind the sudden Bitcoin hashrate decline is attributed to the start of the dry season in China. Noteworthily, China houses the most (over 50 percent) Bitcoin hashing power. The United States, Russia, Kazakhstan, Malaysia, and Iran, see as low as 7.24 percent, 6.90 percent, 6.17 percent, 4.33 percent, and 3.82 percent of the total hash power, respectively.
An issue with China’s dominance
Following China’s dominance of the Bitcoin hashrate, the network was significantly affected as most miners temporarily shut down operations to relocate as the dry season comes. Perhaps, the rainy season in China comes with excess and cheap electricity supply. Dry season only suggests otherwise, so it’s safe to say that most of the Bitcoin miners are relocating in search of a cheap supply of electricity.
Bitcoin hashrate has dropped by ~45% over past 3 days, presumably due to Chinese miners relocating equipment for the dry season.— Jameson Lopp (@lopp) October 27, 2020
Hopefully in coming years the semi-annual hashrate fluctuations will decrease in volatility as China’s share of hashrate continues to drop. pic.twitter.com/eBElCCniJU