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Even though bitcoin prices fell this week, network hash has also declined significantly since hitting a top on May 9. During the last week the hashrate saw swings of up to 15%, which is likely due to the crypto market downturn, alleged issues with power outages in Sichuan, China, and the upcoming difficulty change.
The bitcoin (BTC) market data shows a weekly loss of 15% on Thursday afternoon (EST) after some recovery.
Bitcoin’s hashrate has been fluctuating in recent days after the price of BTC dropped significantly in value during the last week. After some recovery, bitcoin (BTC) market data shows that seven-day stats indicate a weekly loss of 15% on Thursday afternoon (EST).
The network’s hashrate or processing power has also followed the downward slide. Wu Blockchain (@WuBlockchain) May 16, 2021— pic.twitter.com/s3fb37t2mKNaturday rates in China aspired for higher hashrates.
On May 16, the Bitcoin hashrate of the entire network plummeted, with Antpool -16%, F2pool -11%, Binancepool -14%, and Huobipool -23%. People in the Sichuan industry pointed out that it should be a temporary phenomenon. pic.twitter.com/s3fb37t2mK
— Wu Blockchain (@WuBlockchain) May 16, 2021
Nevertheless, Wu explained to me that electricity consumption in China at the present time is extremely high. According to the reporter Colin Wu or “Wu Blockchain” on May 16, “the Bitcoin hashrate of the entire network plummeted.” The power company decided to start a temporary blackout of the mine on the 16th at 2 pm.
During the upcoming Difficulty Spike in the next nine days, miners may be Laying LowGrid issues have troubled miners throughout China's mining history, especially during most of the rainy season in Sichuan. In fact, the hashrate started climbing northbound again after Wu’s Twitter statements. The Chinese mining dominance is not the only reason for the hashrate dip. Possibly a reason why the hash rate is falling lower is due to a predicted difficulty spike happening on May 20, 2021.Bitcoin mining difficulty.
The main reason is that the local weather is hot and the industrial power consumption is large, but the water flow of hydropower is insufficient, which is 30% less than in rainy years. The power company decided to start a temporary blackout of the mine at 2 pm on the 16th.
With a Difficulty Spike Expected in 9 Days, Miners May be Laying Low
Grid issues in China have always plagued miners throughout the years, especially during the wet season in Sichuan. Leave us your thoughts on this topic in the comments section below.
China’s mining dominance is not the only reason the hashrate dip has been in play. Another reason why the hashrate is dropping lower might be because of the predicted difficulty spike coming up in nine days.
This company and the author are neither responsible for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. News reported last week, and at the time of the report, the difficulty change was an estimated 13 days away. BTC miners might be ‘gaming the network’ in order to drop the difficulty to a lower metric.
If BTC miners let the hashrate ride high above the 180 to 200 exahash per second (EH/s) range to this day, then the difficulty would have jumped to an estimated 30.30 trillion. At the time of writing, BTC’s mining difficulty is 25.0 trillion and instead of jumping to 30.30T, current estimates show a smaller 2.90% spike to 25.77T.
Similarly, the network’s hashrate, or the processing power, has continued to decrease. There is a number of reasons why the hash rate has dropped, including an accident that occurred on May 16 where Antpool had dropped by 20%, F2pool -12%, Binancepool -23%, and Huobipool dropped by 20%.
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Image Credits: Shutterstock, Pixabay, Wiki Commons, Twitter, Coinwarz.com, Btc.com,
Disclaimer: One other reason for the hashrate fluctuation stems from Chinese reports. According to an article by reporter Colin Wu of the Wit Blockchain on May 16, "the Bitcoin network's hashrate plummeted." Bitcoin.com does not provide investment, tax, legal, or accounting advice. Wu noted that people in the Sichuan industry knew it would only be a temporary phenomenon.
