TheMinerMag data suggests that the real impact is much smaller than what was initially reported.
The latest Miner Weekly reportInitially, there was a temporary decline in the hashrate of Bitcoin, which could be attributed to events occurring in Xinjiang. But the decline also happened to coincide with the power cutbacks in the United States.
The majority of major pools have recovered within days to levels close to pre-dip, with a decline in exahashes/second (EH/s) that is much lower than early reports citing a loss of approximately 100 EH/s. “That points to a largely temporary disruption rather than a sustained, region-specific shutdown,” The report stated.
It is useful to make this distinction when assessing Bitcoin’s security or miner activity. While large, sustained hashrate declines A single event in a region can have a significant impact on block production, mining difficulty and geopolitical risks.
TheMinerMag data shows that North America was the region with the biggest pool level declines on Monday. Foundry USA Hashrate dropped by 180 EH/s, according to a single report.
You can also contact us by clicking here. Chinese-origin mining pools Recorded combined declines around 100 EH/s. “attributing the entire drop to Xinjiang would be a stretch,” The report stated.
Related: Texas grid is heating up again, this time from AI, not Bitcoin miners
What happened in China, then?
There are reports of Bitcoin being renewed (BTCThe crackdown against mining in China has been revealed this week by Jianping Kong. A former executive with hardware maker Canaan stated that some operations in the Xinjiang region The site has been closed down.
According to early social media estimates, up to 400,000-500,000 mining machines were believed have shut down.
The industry’s analysis and subsequent reports, however, revealed that these disruptions are more likely to be due to issues with compliance or operations than they are a coordinated, broad enforcement campaign.
The short hashrate drop is not the end of it. Bitcoin mining activity linked to China Data from CryptoQuant shows that despite the ban on all crypto currencies in 2021, it has been resurfacing in recent years. CryptoQuant Data suggests China could account for 15%-20% of the global Bitcoin mining activities.
Xinjiang has been a magnet for miners because of its plentiful and low-cost supply of energy. Local governments are also investing heavily in the infrastructure of data centers. Some facilities have reportedly leased excess capacity to Bitcoin miner to offset fluctuations in computing demand.
Related: Crypto Biz: Mining weakness tests Bitcoin’s market cycle
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Source: cointelegraph.com
