Amber

Bitcoin Mining Difficulty Suffers 5% Dip following Closure of Xinjiang’s Mining Operation

UTC by Kofi Ansah · 3 min read
Bitcoin Mining Difficulty Suffers 5% Dip following Closure of Xinjiang’s Mining Operation
Photo: Depositphotos

Yunnan now joins Inner Mongolia, Xinjiang, and Qinghai that have all issued notices to shut down part or all of the mines in their regions.

Bitcoin mining difficulty dropped by 5.3% in the latter stages of June 13, days after the BTC network recorded a drop-off in hash rate. Bitcoin mining difficulty is a measure of how the network aims to keep blocks being produced at an even rate, despite the wild fluctuating hash rate. To house the varying hash rate, the Bitcoin mining difficulty makes the mining process easier or harder every 14 days. 

On-chain data revealed that the BTC network’s mining difficulty dropped to 19.8 trillion, a level not seen since early January, just 15 days after it dropped to 21.05 Trillion at block height 685,440, indicating a 16% drop compared to its recent all-time high of 25.05 Trillion at block height 683,424, recorded on May 13. The network’s hash according to on-chain data has also seen a significant drop even before China’s Bitcoin crackdown announcement.

Bitcoin network’s hash rate had however remained steady after the previous difficulty adjustment on May 30, before miners in Xinjiang’s Zhundong Economic and Technology Development Zone received orders on June 9 to halt all operations amid the ongoing cracking down on Bitcoin trading and mining activities in Chinese provinces. 

Major Chinese Bitcoin mining pools after the announcement saw a deep plunge in hash rate by more than 20% on average, seeing the average block production interval between June 9 and 14, extended to more than 12 minutes as compared to the 9.9 minutes of average block production interval from the last adjustment to June 9.

China’s Bitcoin crackdown is still ongoing as Yunnan, becomes the latest province to shut down any company involved in cryptocurrencies in violation of the new rules. According to a report from the Cambridge Bitcoin Electricity Consumption Index, China accounts for 65% of the global Bitcoin hash rate and Yunnan ranks fourth in China in terms of Bitcoin hash rate. 

A report by China Securities Journal revealed that Yunnan provincial authorities have issued a notice, ordering an investigation into all alleged illegal use of electricity by companies and individuals involved in Bitcoin mining. The report also stated that the Yunnan Energy Bureau is ready to cut the power supply to anyone illegally using electricity for Bitcoin mining, users that evade electricity bills, as well as shut down Bitcoin mining operations that may pose a safety risk related to their electricity usage.

The Yunnan Energy Bureau confirmed to the reporters that it is requiring subordinate energy departments in the province to fully inspect Bitcoin mining farms by the end of June. Yunnan now joins Inner Mongolia, Xinjiang, and Qinghai that have all issued notices to shut down part or all of the mines in their regions.

Bitcoin News, Blockchain News, Cryptocurrency news, News
Kofi Ansah
Author Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

Related Articles
EarnBet