Bitcoin mining difficulty saw a noticeable decline early Sunday in UTC, as the bitcoin hash rate decreased dramatically.
The data shows that the network’s mining difficulty was revised down to 21.05 trillion at block 685,440, a 16% drop compared to an all-time high recorded on May 13th.
What are the reasons for the decline in Bitcoin mining difficulty?
The average production period of Bitcoin block already increased to 11.8 minutes from May 13, the date of adjustment of mining difficulty, on May 21, when the Chinese State Council reiterated in a recent meeting that strict measures must be taken against Bitcoin mining and trading activities in China, which An impact on the miners of Bitcoin in China, which in turn affected the difficulty of mining Bitcoin.
After China’s State Council commented on Friday last week, the seven-day moving average retail rate has remained relatively flat around 150 EH / s.
As we mentioned, the computing power related to Bitcoin has decreased since May 13 due to some factors, most notably the ban proposal from the State Council of China.
In addition to some miners starting the migration process from China’s northern provinces to the Sichuan Hydropower Center, power stations in Sichuan have been restricting the supply of energy-intensive industries, including mining farms, due to the delayed rains this year.
As a result, there was a significant rise in the demand for electricity from the general public, which had to be given priority.
It remains to be seen whether the Sichuan government will react to the government’s indication of cracking down on bitcoin mining activities, and how it will respond.
Unlike its counterparts in Inner Mongolia, where energy relies mostly on fossil fuels, the Sichuan government will host a symposium next week to understand the impact of the ban’s proposal on the domestic hydropower economy.
Meanwhile, some Chinese bitcoin miners are looking to overseas energy capabilities to migrate their equipment outside of China to hedge future regulatory uncertainty.