The fall of Bitcoin hash rate yet: flooding in China brought down tens of thousands of miners

Network hash rate of Bitcoin is significantly decreased on June 27 and still could not recover. This time we are not talking about any secret machinations, and natural disaster: during the flood in China destroyed a huge number of devices for mining.

According to reports in Chinese local media, the destruction of the device occurred mainly in the Western province of Sichuan, which accounts for about 70% of mining in China. Despite claims that authorities are trying to deal with mingoval industry of the country, 70% of global mining is still located in China.

«Currently there are no specific data on the losses on farms in Sichuan,» reports Golden Finance, reinforcing the evidence of the destruction of the miners photography. «However, given the specificity of the region is likely at least tens of thousands of miners were flooded. The above image shows that the device is apparently not functioning and is probably not repairable».

Bitcoin, it seems, immediately felt the effects of the disaster. Data
demonstrate a sharp decline in can see the time of the flood. Soon, however, the situation is slightly improved – you can assume that other miners had launched a new device instead of the failed competitors to increase their share of the loot. Golden Finance thus argues that the computational power of the entire network decreased significantly from 24 June. However, in mining, a lot depends on the luck factor, and short-term fluctuations can cause even more significant fluctuations than the losses from natural disasters.

Thanks to cheap electricity, cryptocurrency mining in China is booming. However, over the past year there are still reports of harassment of miners in the country and the unofficial policy of the authorities against the ban on working in the industry.

In June, Chinese police confiscated
200 devices for mining cryptocurrency after the operator of the grid Anhui province in the East of the country called the police due to unauthorized leakage of electricity. In the end, was discovered illegal mining farm bitcoin and ether.

This is not the first such case in the country in April this year, law enforcement seized in Tianjin 600 devices for mining and arrested six people on suspicion of illegal consumption of electricity.

In General, Chinese miners are in a difficult situation. After the ban on ICO and cryptocurrency trading in the autumn of last year, has repeatedly appeared information indicating that the government has on the miners, introducing outright bans. This is forcing miners to seek other jurisdiction of cheap energy in the Asian region. But entrepreneurs face challenges.

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