Bitcoin Sees Drop in Hashrate Because of Heavy Rainstorms in China
Large Chinese Bitcoin mining pools are each facing daily hashrate drops between 10 percent and 20 percent after numerous rainstorms in Sichuan.
China’s southwestern province is believed to have more than 50 percent of Bitcoin’s network total computing power, but it now has been hit by powerful rainstorms that began last week and peaked over the last two days.
Bitcoin’s Hashrate Has Dropped
The heavy rainstorms have produced electricity outages in various regions of the province as hydro-plants stop generating power to help get rid of the floods. Some countries are also facing telecommunication and Internet breakdowns, according to Kevin Pan, CEO, and co-founder of PoolIn.
Therefore, affected Bitcoin mining farms in the area are forced to unplug from the network for now. It is not clear when the issue will be fixed as the rainstorms are still ongoing.
Information on BTC.com shows the globe’s top four Bitcoin mining pools, which is PoolIn, F2Pool, BTC.com, and Antpool, all based in China, have seen their hashrates go down between 10 percent and 20 percent in the last 24 hours.
The computing power connected to these pools answers for around 50 percent of the Bitcoin’s network total.
The Seven-Day Average of EH/s is Still High
Pan said in a Weibo post on Tuesday, China time, that besides the mining farms being forced to unplug because of electricity and Internet breakdowns, some have also stopped operations and evacuated their on-site staff for safety measures.
In the meantime, Bitcoin’s last three-day and one-day average hashrate have gone down to around 123 and 110 exahashes per second (EH/s), respectively. These figures are down more than 3 percent and 10 percent, respectively, for the seven-day rolling average of approximately 127 EH/s, which is still at an unprecedented high.
The monsoon season in China each year comes with lots of rain, hence excessive hydro-power resources, more so in the country’s southwestern areas, like Sichuan and Yunnan. Such energy excess results in cheap electricity prices that have been appealing to Bitcoin miners.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.