Bitcoin continues to fall

Since early November, the Bitcoin hashrate has fallen to its lowest level as China begins to shut down mining. Bitcoin’s hachrate network, a measure of its computational power, fell 46% from its mid-May high. According to Bitinfocharts, the bitcoin hashrate is currently 91.2 EH / s, close to half of its 171.4 EH / s published less than six weeks ago. He also reported a drop in mining profitability from a peak of $ 0.449 per day per terraces per second to a current level of $ 0.226 compared to the same period.
The BTC hashrate was not so low for 8 months, last crawling below 90 EH / s on November 3, 2020. A higher hashing rate means more competition among miners to validate new blocks, increasing the number of resources needed to carry out a 51% attack, and so the network does safer.

The decline in hashrat and mining profitability is due to the current penetration of Chinese authorities on bitcoin mining facilities across the country. Pictures of the main mining basins in the Chinese province of Sichuan, which are closed, have been shared on social networks. On June 18, authorities in the city of Ya’an – a city in the western prefecture in western Sichuan – ordered the cessation of local Bitcoin mining operations. At the end of 2019, CoinShares estimated that Sichuan hosted more than half of the global hashing rate, attracting miners with its cheap and seasonally abundant hydropower resources.
On June 12, the authorities of Yunnan Province also issued a notice ordering an investigation into the alleged illegal use of electricity by individuals and companies involved in bitcoin mining. According to a June 15 CNBC report, Castle Island Ventures partner Nic Carter noted that Bitcoin hashrate was declining, speculating: “It seems likely that installations will be shut down across the country.” In early May, there were already signs that the Bitcoin hashrate was starting to leave China. Carter predicted that at least half of the entire Bitcoin hashrate would eventually leave China.
North America, especially the state of Texas, has become one of the main destinations for what has been called large-scale mining migration due to favorable legislation and an abundance of cheap renewable energy.