Most BTC miners in China’s Sichuan province shut down their machines
Most of the BTC miners in China’s Sichuan province are shutting down their machines. This created another volatility in the already uncertain cryptocurrency market .
20 June at 0:00 was signaled to stop the activities in this region. In other words, the time required to stop mining activities in the region has expired. 8BTCnews claims that this region is home to one of the largest Bitcoin mining operations in the world. Therefore, some miners are waiting for the start of a dark age for this industry.
8BTCnews claims that the impact of this pressure is starting to ripple through the BTC mining industry. AntPool, Poolin, Binance, Huobi Pool, one of the largest Bitcoin mining pools in terms of hash, recorded significant losses in computing power. These losses reached 16%, 21%, 25% and even 31.19% in the last day.
Overall, the average processing power of the Bitcoin network is 129.52 EH/s. That’s almost a 30% drop from its all-time high. This was reflected in BTC’s Mempool and the transaction cost fell to 2021 lows of 19 sat/vB ($0.96) for a high priority transaction.
How Will It Affect Bitcoin (BTC)?
Sino Global Capital publishes reports on Bitcoin, China, and changes to the company. The company offers an objective look at what can only be interpreted as a bearish situation for Bitcoin. The investment firm claims that although some of its BTC mining operations will shut down, some will remain.
Moreover, some of the miners with large side operations were already leaving the country. Medium and small-scale miners seem more likely to stay. Miners on the move were expecting a crackdown from March 2021. Therefore, they made the necessary preparations.
This accelerated the migration of Chinese miners to other countries as more bans were introduced in May from Beijing, Qinghai, Inner Mongolia and Sichuan with the goal of ensuring financial stability.
Sino Global Capital believes that China has a vested interest in industries that endanger national economic stability, Bitcoin mining and cryptocurrency trading. The country may also be targeting activities that enable corruption at the state level.
In this process, miners embraced three things: selling their equipment, seeing how the pattern setting works, and migrating. The investment firm also expects the distribution of miners on the move to change.
The overseas migration points of Chinese miners are quite diverse and appear to be evenly distributed between North America, Central Asia, Russia, Northern Europe and North Africa. This is basically a positive development and greatly increases the decentralization of the Bitcoin network.
Nic Carter, a partner at Castle Island Ventures, says that moving BTC’s hash power outside of China will bring greater decentralization to the network. Additionally, Carter believes that BTC mining operations can be moved to locations where they will run on 100% renewable energy.
This, in turn, can provide a satisfactory solution to one of the biggest counterarguments against Bitcoin, the claim that it “consumes too much energy” .