Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.
The recent intensive crackdown of the Bitcoin has led to price decline. Bitcoin is currently trading at the $34,200 level.
Generally, China’s crackdown targeting Bitcoin has dealt a big blow to Bitcoin era, particularly Bitcoin mining pools and companies. However some players have been more affected than others, but for miners who are not based in China may be reaping big time.
The mining hashrate for Bitcoin, the rate at which Bitcoin is mined, dropped on Sunday to 94EH/s. As per Glassnode’s data, this is the lowest recording in a year’s time, and the Hashrate, mining difficulty may shed 25% when the next reset is on July 3. Such a change, decrease, may be the largest in the last 12 months. This is according to Compass Mining.
According to BitOoda’s chief strategic officer, Ama Doctor, decline in the hashrate coupled with the fact that most China based miners are moving out of business, competition will definitely reduce making the mining business profitable for the remaining miners. BitOoda is a trading platform for most digital assets in the market.
The CSO added that as the hashrate went down, the rewards in terms of Bitcoins earned per computational unit likely went up for the remaining active miners. However, he said that it would be difficult to predict the dollar equivalence thanks to bitcoin’s volatile nature. China’s crackdown is by a big share solely responsible for bitcoin’s woes. When rumours started in April, Bitcoin had just achieved its all-time high, trading at $65,000. Today, the digital coin is trading at $34,200.
As per BitOoda’s views, the hashrate is likely to further drop to 85EH/s thanks to decreased mining hash power. The decreased Hashrate is expected to slump in the next reset which will be on July 19 or 20. A BitOoda’s spokesperson was quoted saying that they believed that it will take a couple of quarters to complete infrastructure deployment, and due to that, the Hashrate will most likely be below what they had forecasted. The forecast was for 10 subsequent quarters. The spokesperson also added that the fall may come to its end depending on the way Bitcoin era respond to the Chinese crackdown.
With the miners who stopped operating from China looking for crypto-friendly places, North America has particularly become a top choice to launch mining operations thanks to a combination of many factors that are good for Bitcoin mining. According to Computer North’s Chief Executive, Dave Perilla, some of the factors include reduced geopolitical risks, higher utility networks, and the region’s emphasis on corporate governance, social, and enviromental impacts. He noted that they’ve recently been receiving requsts from companies that have recently moved operations from China. The CEO added that the companies are intending to relocate ASAP.