According to Blockchain.com, Bitcoin’s hashrate fell at its fastest rate in three years from June 15 until Tuesday.
Bitcoin’s hashrate On Tuesday, the number of terahashes decreased significantly from nearly 943.66 billion (TH/s) TH/s on June 15. This is a drop of over 15%.
A sharp fall in oil prices has fuelled speculations over possible environmental and geopolitical causes.
Although the reasons behind this sudden drop in cryptocurrency are not confirmed yet, the community of crypto enthusiasts is pointing the finger at Iran.
Related: 93% of all Bitcoin is already mined. Here’s what that means
Iran and its presumed connections
Iran has large scale Bitcoin mining operations. National Council of Resistance of Iran reported Late May, local power shortages in some areas were attributed to large cryptocurrency mining operations that are run by or protected Iranian state actors. This includes the Islamic Revolutionary Guard Corps.
This makes the Iran theory plausible. However, closer inspection raises questions about it. Iranian government imposed TechCrunch said that Friday, the government imposed a virtual internet blackout to prevent cyber-attacks.
The global hashrate fell from 884,6 million TH/s to 865 MTH/s by Friday. This was a decrease of 2.2%.
On Sunday, the US launched an airstrike on Iranian nuclear installations, which was, according ReutersElectric grids were also affected. The global hashrate fell by 1% from 869.9 T/s to 860.9 T/s over the weekend.
Related: Bitcoin hashrate tops 1 Zetahash in historic first, trackers show
It is weak
A little more than 3% of total hashrate decline coincided with the recent events in Iran. Moreover, hashrate dropped by more than 6.25% between June 15 and Thursday – before Iran was attacked by the US, or an Internet blackout was imposed.
The data show that hashrate had already been in a downward trend before these events and that this fall may have even worsened due to the recent events that took place in Iran.
The ongoing electricity price hikes and other factors are also likely to be a factor. heatwave In the US. It is possible that low-profitable mining operations will close due to the heat wave.
Heatwaves lead to increased power consumption and prices. This further reduces Bitcoin mining profitability. Con Edison of New York recently asked Customers are encouraged to conserve electricity during this heatwave. Power prices have risen in certain regions the most since January.
Bitcoin’s hashrate network isn’t directly measured. Instead, it is calculated using block time and the current mining difficulty.
The mining difficulty can be used to determine the average computing power required for a block. This calculation is not precise because the computing requirements are averages and the real-world mining is subject to significant fluctuations based solely on chance.
Iran is a theory that cannot be discounted, even though market analysts suggest geopolitical and environmental pressures, as well as economic ones, are in play.
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Source: cointelegraph.com
