As the Chinese announced to ban the crypto mining activities in the Sichuan province, the Bitcoin mining power slump down by 16.94 percent.
Lowering hashrate at times affects the price of Bitcoin in a negative manner. In April, when the Chinese authorities crackdown on Bitcoin mining activity in Xingjiang region of the country, the hashrate of Bitcoin came down by 30 percent, which further resulted in a fall in the price of Bitcoin by $10,000.
The latest ban in China calls for a drop in Bitcoin’s price by 5.71 percent reached $34.205. However, compared to the market capitalization of the top 20 cryptocurrencies, the plunge in Bitcoin’s value is considered to be very less.
Data released by BTC.com specifies that many of the mining pool lost their positions due to this loss. BTC.TOP, which earlier was at 11th position, is now the 15th largest mining pool after it lost 51.39 percent of its hashrate.
Notably, Antpool.com, the largest mining pool, has lost 14 percent of its hashrate after China’s recent restriction announcement.
According to the reports, around 65 percent of all the computational power backing the Bitcoin blockchain comes from China. But now as many of the mining provinces has been shut down, it appears that the future of mining in China would be depressing and that will be a big deal for the industry.
For a very long time, Sichuan province has particularly been very popular in the mining community because the miners were able to draw a huge amount of hydroelectric power at a very low price.
Many of the Bitcoin miners also set up their business in the Xinjiang province of the country. Being a cold-weather region, the miners had to feast on the coal-powered energy sources for mining a bitcoin and that helped them save the cost of electricity.
However, that also did not last for a long time because on June 9 the Chinese authorities ordered to shut the mining activities in the Xingjiang region.
As per the Chinese authorities, the miners waste a huge amount of energy while mining a bitcoin, which they do not consider to be useful.