Bitcoin's Hashrate Affected by Floods in China

Bitcoin’s Hashrate Affected by Floods in China

The very recent drop in Bitcoin Hashrate has been credited to a flood that happened in China. This particular area affected by the flood was responsible for 70 percent of Bitcoin mining. As per a report, China has been a solid supporter of Bitcoin mining with numerous mining exercises operated regardless of the strict warnings and regulations imposed by the government.

Western Sichuan area, a place which represents 70 percent of mining yield was to a great extent affected by the flood. In spite of the report, there has not been any information to access the lost. From photographic confirmation, mining was extremely influenced by this occurrence.

“However, from the perspective of the area affected by the disaster, at least tens of thousands of miners have been flooded,” according to a report. This has come as a  very big blow to the miners in the area as there have been huge losses in terms of mining equipment which are destroyed beyond repairs. 

As per some analysts the recent drop in Bitcoin’s hashrate is because of this incident; however, others share the views that the vanquished mining equipment cannot be the only reason for the drop in Bitcoin’s hashrate. As per the data, the hashrate of the cryptocurrency took a rapid drop at the same time the mines were destroyed.
According to the report, this drop in the hashrate was not long and that it was brought back to the normal. The logical explanation for this could be that the other miners took over the role and filled the void.
Due to the association of Bitcoin to various crimes, it has been on the radar of various government authorities. Because of this, there has been a ban on mining in China and South Korea; however, there are miners who still go for it illegally.
It is believed that the drop in Bitcoin’s hashrate could be attributed to the unfavourable regulations imposed by China considering their user base. It is believed that the value of Bitcoin will rise to at least $22,000 by the end of this year.

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Madhuri Arora
A passionate writer and an avid reader. I love watching action and superhero movies. Love food, music, travel and games.