Meanwhile Chinese authorities intensified Bitcoin (BTC) mining, some cryptocurrency experts believe this may be a blessing in disguise for this sector.
The Chinese government recently massively cut off BTC mining sites in Sichuan Province, causing a drop in prices in the cryptographic market.
BTC mining is expected to be more profitable
“Cryptography experts say that as more and more Bitcoin miners go offline due to Chinese restrictions, the share of other miners in the network will increase, which could make mining much more profitable.”
Kevin Zhang, vice president of cryptographic mining company Foundry, added:
“As more hashrat drops out of the net, the difficulty adjusts downward, and the hashrate active online gets more of its relative share of mining commissions.”
Therefore, those Bitcoin miners who remain active after the post-China attacks are expected to find it easier and more profitable because fewer miners out of the Bitcoin network, less computational guesses per second, are needed to find a mathematical solution. As a result, the scattering power is reduced and Bitcoin’s network difficulties are reduced.
Bitcoin hashrate collapses
By To Blockchain.com data, BTC’s hashrate shifted from a record high of 180.7 million terahashes per second in mid-May to about 116.2 million on June 23rd.
The hashrate value is used to measure the processing power of the BTC network. It allows computers to handle and resolve problems that allow transactions to be accepted and confirmed over a network.
More than 90% of BTC ‘s mining capacity was reportedly disappeared in China due to Chinese authority intensified repression.
As a result, many miners moved from China to neighboring areas to establish new mining facilities. The BTC miners had to sell their holdings in order to raise the necessary capital to set up the necessary facilities.
However, it remains to be seen how this sector will develop.
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