The rainy season has ended in the Chinese city of Nowadays, which is a favorite of Bitcoin miners. Analysts are of the opinion that Bitcoin hash rate may “drop” by the end of the season.
There is a rainy season from April to October in the province of China now. This period is popularly known as the Fengshui Period, and electricity prices in Sichuan decrease significantly compared to other provinces in this period. It is indispensable for Bitcoin miners in Fengshui Era due to low electricity costs. However, after the mining migration due to the end of the season with the end of October, analysts detected a decrease in the Bitcoin hash rate.
Bitcoin hashrate is falling
Thomas Heller of the Bitcoin mining blog Hashr8 made statements on the subject on his Twitter account. Heller explained in his statement that mining power dropped by almost 22 EH / s (exahash / second) per second. Heller stated that this situation coincided with the end of the previous day – October 25th – and explained that it might be related to the migration experienced after the season change.
All eyes on the hashrate. For many mining farms in Sichuan, hydro season 丰水期 ended on Oct 25. Many miners will move to Xinjiang, Inner Mongolia, or abroad. Some Sichuan farms will get 1 month of 平水期 (normal water level) & others will have 枯水期 (low water level) until May! pic.twitter.com/CJQryamG4j
— Thomas Heller (@thomasheller_) October 26, 2020
Kevin Zhang of Foundry, partner of the mining-focused Digital Currency Group, recorded the decline at 20 EH / s, lower than Heller. Blockchain.com site also made calculations related to Bitcoin hashrate measurements. Accordingly, the site calculated that the 151.1 EH / s available on October 24 fell to 116.3 EH / s.
Analyst Thomas Heller said the miners will migrate to other regions in present time where the hash rate is high after the Fengshui Era, such as Xinjiang and Inner Mongolia. In addition to these statements, Heller claimed that there will be a 7.4% to 8.8% drop in Bitcoin mining.
China is the leader with 60% hash rate
The Cambridge University Bitcoin Electricity Consumption Index displays a statistic showing the monthly average of the total hash rate on its site. However, data from the last April of 2020 is available on the site. According to statistics, China is the leader in hash rate ranking with a rate of approximately 66% according to April 2020 data. The city ranking in China is about 36% Xinjiang and about 10% Shichuan.