The network’s hash rate had declined dramatically even before China’s bitcoin mining crackdown announcement, therefore Bitcoin’s mining difficulty experienced a noticeable decline around Sunday midnight UTC time.
According to on-chain statistics, the network’s mining difficulty has been lowered to 21.05 Trillion at block height 685,440, a 16 percent decrease from its recent all-time high on May 13.
In fact, Bitcoin’s average block production interval already increased to 11.8 minutes between May 13, the last mining difficulty adjustment date, and May 21, when China’s State Council iterated in a recent meeting that there needs to be a crackdown on bitcoin mining and trading activities in China.
The average hash rate between May 13 and 21 had already plummeted to roughly 147 exhashes per second (EH/s), which was 18 percent quicker than the Bitcoin network’s anticipated 10-minute block creation period.
The seven-day moving average hash rate has been generally stable at 150 EH/s since the China State Council’s remark on Friday last week.
As previously reported, the computer power associated with Bitcoin has decreased since May 13 owing to a variety of issues.
While some miners have begun to migrate from Northern Chinese provinces to Sichuan’s hydroelectricity center, the power plants in Sichuan have been limiting supplies to energy-intensive businesses such as mining farms owing to this year’s rain delay. As a result, there has been an increase in public demand for power, which has had to be prioritized.
It’s unclear whether or not the Sichuan government would respond to the State Council’s high-level policy signal to tighten down on bitcoin mining activity.
Unlike its counterparts in Inner Mongolia, where the majority of electricity is derived from fossil fuels, the Sichuan administration is conducting a conference next week to determine the effects of a simple ban on the local hydropower sector.
However, some Chinese bitcoin miners are exploring for energy capacity outside of China in order to move their equipment away from regulatory uncertainty.