Cryptocurrency

Bitcoin Mining under pressure Hashrate Crash, and weather in the China debt

The Bitcoin price has held some interesting weeks, as we said in our yesterday’s article. Connoisseurs know, however, that of course is only the consequence of a whole series of other factors and you should look for an in-depth picture prefer this. One of which is the Bitcoin Mining hash rate, which was a week long, as we reported, on a flight of fancy. Suitable for the Bitcoin price crash of yesterday, dropped the Hashrate in the last few days significantly. Since most of the Bitcoin Mining farms in China, many experts in the local weather.

Bitcoin Mining is threatened by the weather in China?

The Bitcoin Hashrate is an important fundamental indicator that we used to assess the “health” of the Bitcoin network. Because, the higher it is, the more computing power is used in the Bitcoin Mining and the more stable the network is.Much of the electricity for the Mining comes from hydropower or other renewable energy, as studies show. Just in, China has focused a much Bitcoin Mining, due to the good conditions there. With other words: the weather in China has, as strange as it may sound, a great influence on the BTC Mining, the Hashrate, and thus, indirectly, on Bitcoin and the rate.Now the monsoon season has recently been in China over the cases otherwise drives through the heavy rain, the production of electricity by water power to the top. The make usually the Miner to Use and can allow more Hardware resources to run, because the electricity is cheaper. This is driving the hash rate up and is good for Bitcoin.The end of the monsoon season, then causes accordingly, to the contrary. The consequence of this is that some of the Miner to deduct even their data centers from the Region of Sichuan and in the regions go, the better conditions. The statements of Miners from China to illustrate the increased pressure on the Miner, whose electricity costs by 25% increased by:

Even if some of them are still able to find a hydropower resource, have increased the cost of 0.04 $ per kilowatt-hour (kWh) in summer to about 0.05$.

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Hashrate Crash to new all-time high

These developments in China are brought up with the Hashrate of a Crash in the last few days in connection. Despite a 120% increase in the Hashrate up to now in the year 2019, and the new all-time high of 114,3 TH/s on the 23. In October, it came up to 7. November provides to a crash on 85,32 TH/s. This retreat, it is important that for a long time, for the first time to an adjustment to the Bitcoin Mining Difficulty down. Before that, there had been 7 adjustments, in which the Difficulty was increased. Coinmetrics wrote on Twitter:

The adaptation of the Bitcoin Mining Difficulty is ~5 hours. Since we see that the average block time is for most of the last week, about 10 minutes, we can expect that the difficulty drops since July for the first time, and a series of 7 consecutive increases is broken.

All of the experienced Bitcoin Fans don’t know that the adjustment of Mining Difficulty and the Crash of the hash rate are desirable, but not a Drama for Bitcoin mean. Both are continuously adapting parameters of the network that adjust from time to time also back to the top.76.4% of all CFD retail investors lose money.What do you say, that the weather in China can have such a huge influence on the Bitcoin Mining? Come in to our Telegram Chat and talk with the experts and the Community. Subscribe to our News channel to not miss any News. (Image Source: Shutterstock)

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.