Bitcoin’s hashrate hits 13-month low

After bitcoin's hashrate reported a small uptick on Saturday, the metric has fallen to its lowest point in 13 months, a new graph by Blockchain.com has shown.

On Saturday, the network posted a 5% increase but by Sunday numbers went down to 101.9 TH/s, which is the lowest since the beginning of June 2020 according to Blockchain.

The hashrate took a serious tumble following the news that China will be suspending all bitcoin mining operations, triggering a price collapse for bitcoin mining rigs as well. The slump is mostly attributed to the Chinese ban, but other factors have contributed as well.

Iran, a country that produces fairly cheap nuclear electricity, has suspended all bitcoin mining operations for the summer, citing electricity shortages.

Following the ban in Sichuan, one of the busiest Chinese provinces, many miners have relocated to Kazakhstan, benefiting from cheap electricity pricing there. BIT mining, one of the most prominent BTC mining companies, has also been moving to the country.

The fallout and what it means for collective security

Hashrate is an important metric in the bitcoin ecosystem. Effectively, the higher the hashrate is, the lower the chance that the protocols can be compromised.

China's mistrust of private currencies prompted the country to act with determination in uprooting private enterprise in the crypto sector.

This has been described as a “trillion-dollar mistake” by MicroStrategy CEO Michael Saylor who believes that the country has jumped the gun. China accounted for 50% of the market share for bitcoin, Saylor explained, generating the country $10bn, with 100% year-over-year growth.

Despite the low hashrate, though, the bitcoin ecosystem continues to add new addresses, according to a report posted by BeInCrypto. In the meantime, you can definitely use your Bitcoin at 1xBit, FortuneJack and Bitcasino.io.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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