Mining data aggregators attribute the decline in bitcoin’s hash rate to the end of the rainy season in Sichuan, which led to the migration of many miners to other jurisdictions.
On October 26, Thomas Heller of Bitcoin Mining Blog (BTC) Hashr8 reported that nearly 22 mining exemptions per second (EH / s) left the Bitcoin network, coinciding with the season’s end the day before (based on weather forecast). ).
Kevin Zhang of Digital Currency Group Foundry, a mining subsidiary, estimated a drop of 20 EH / s, indicating that the average seven-day hash rate in Bitcoin was 132.9 EH / s, while the daily hash rate was also 112.9 EH / s.
According to estimates by Blockchain.com, Bitcoin’s hash decreased from 151.1 EH / s on October 24 to 116.3 EH / s the following day.
Sichuan Province is one of the largest mining centers in the world. Miners flock here to take advantage of inexpensive hydropower during the rainy season, and then leave just as quickly.
According to the latest data from the University of Cambridge Bitcoin Electricity Consumption Index (BECI), in April 2020, the province accounted for 18.5% of the world’s cannabis, double what it had been before the rainy season.
Instead, he predicted that many miners working in Sichuan had moved abroad or to Xinjiang or Inner Mongolia, which accounted for 30.1% and 7.7% of global hemp production in April, respectively.
In 2018, it was estimated that 80% of Chinese miners migrate to Sichuan during the rainy season from other parts of the country. Sichuan accounts for 54% of the world’s mining operations, according to CoinShares data released in December 2019.
Additionally, according to published data, which indicates that the next Bitcoin mining adjustment later this week will see a decline of 7.4% to 8.8%. If accurate, the event would include the second largest downside adjustment in 2020, after falling nearly 16% after the March Black Thursday crash.