Bitcoin hash rate drops 27% due to heavy rains in China
Last Updated on 18 August 2020 by CryptoTips.eu
The rainy season has arrived in Sichuan province in China, forcing the closure of some power plants. As a result, the Bitcoin hash rate has fallen sharply.
Sichuan, a capital region for the Bitcoin has hrate
It is estimated that the Bitcoin network hash rate is 60-65% provided by China. And within the country, it is the province of Sichuan, with its numerous hydroelectric plants, which supplies the most power.
In total, it is estimated that up to 50% of Bitcoin’s hash rate comes from this region. This is why the climatic events that take place there have a strong influence on the world’s leading cryptocurrency.
The rainy season has arrived
The rainy season has arrived for several weeks in China. Historically, it is a rather lucrative period for the Bitcoin miners who have settled there: the rains feed the hydroelectric plants, sharply lowering the cost of electricity.
The Bitcoin hash rate records would thus be partially due to these factors.
But heavy rains can bring landslides and mudslides, which threaten buildings, including power plants. Several of them have thus had to temporarily close their doors in recent days, which has impacted the BTC network, but luckily not the Bitcoin price.
Bitcoin’s hash rate fell from 144 EH/s to 105 EH/s yesterday, a drop of 27%. Data from BTC.com also confirms this drop in hash rate from the main mining pools:
This morning, Bitcoin’s average hashrate climbed to 118 EH/s. As the situation is temporary, the hash rate should continue to rise and again hit the record levels of the past few weeks. But the news vividly confirms China’s considerable weight on the Bitcoin network, which still operates largely on local infrastructure.
