Advertising

Bitcoin hashrate drops after coal mine accident in China

votes
Article Rating
Bitcoin hashrate has dropped about 40% in the past 24 hours, from more than 180 petahashes per second to around 105 Ph/s.

The remote mountainous region of Xinjiang is one of China’s main mining provinces.

According to the website BTC.com, Poolin had the biggest drop (34.55%) among the main mining companies, followed by Huobi.pool, which saw its hash rate plummet 26.21%.

Antpool and Binance Pool also saw a hashrate drop of almost 21% in the hash rate. The fall is attributed to a huge coal mine accident in Xinjiang, and now “northwest China is undergoing a complete blackout for safety inspections”.

Bitcoin hashrate drop 18 04 2021. (Source: BTC-com)

Bitcoin hash rate

This incident caused volatility in Bitcoin block times, taking almost two hours to find blocks.

Block times now seem to be getting back to normal a little bit, but there was still about an hour to find blocks around 7:00 am on April 18, 2021.

Bitcoin hash rate

Block Times

Bitcoin block times took almost two hours to find blocks which may have helped Bitcoin plummet on Sunday and now seem to be getting back to normal a little bit, but there was still about an hour to find blocks around 7:00.


 As can be seen above, yesterday there were no blocks in a 9-hour interval. Also, there were blocks with intervals of five and four hours. This is expected behavior after a sudden drop in the hashrate.

Bitcoin hash rate

Thus, the Bitcoin network will take about two weeks to readjust the difficulty and bring the block times to the usual ten minutes. Until then, the blocks may take longer than normal.

READ more:  Bloomberg report says Bitcoin is on its way to US$100,000, and Eth solidified support bases

So, what really happened with Bitcoin hashrate, in April 2021?

What exactly happened is not very clear, but according to local media, a flash flood caused underground power outages and communication disruptions in Xinjiang, which affected the Bitcoin mining industry.

Primitive Ventures co-founder Dovey Wan said there was an explosion at a coal mine in northwest China’s Xinjiang region, which led to a “big” power outage.

According to Wan, the incident resulted in data centers being shut down and an instant drop in the Bitcoin hashrate, the network’s computational power.

“A coal mine explosion is considered a high-level security incident that leads to scrutiny by the central authority over individual mining operations and related local government agencies. Therefore, the cut is underway amid local inspections by the central authority ”.

The remote mountainous region of Xinjiang is one of China’s main mining provinces, with this April 16 incident causing a large-scale blackout. The authorities there are apparently conducting “security inspections” at mining farms and data centers.

READ more:  Do Uniswap, PancakeSwap, and Cardano cryptocurrencies worth watching?

Some Western media are describing the situation as an explosion, while others say there has been a flood in the coal mine.

According to Reuters, 21 miners were trapped in the flooded coal mine. Part of the mine was filled with water, leading to power outages. According to CCTV and Bloomberg, rescue workers were still working to save the trapped miners and drain the floodwater.

The floods in China happen with some frequency, but generally in the months of July.

Last year, the Bitcoin hashrate fell after a flood in Sichuan, the main Bitcoin mining province in China. In 2019, another flood in July destroyed hundreds of GPUs and ASICs, which caused the Bitcoin hashrate to be affected.

Bitcoin hash rate

Concerning the miners who remain on the network, there is not much difference, as they still receive the same amount of bitcoins as they did when the Xinjiang miners were on the network. These are obviously lost, as they are not mining.

As soon as the difficulty settles, the profits of current miners will double, assuming that Xinjiang’s miners have not recovered at that time. In that case, hooking up old mining equipment can be profitable.

Besides, this can streamline the distribution of Bitcoin mining in the rest of the world, which is becoming increasingly strong in America and Europe.

The only difference, therefore, is some variation in block times, with confirmations of an hour or two now expected on occasion, but blocks of ten minutes may take a little longer.

votes
Article Rating


Follow us on Facebook, Twitter, Instagram, and Telegram, and don’t miss any crypto news.


Disclaimer:

The information expressed in this article is solely those of the author and do not necessarily reflect the vies of CryptoDeFinance.  Each and every investment and trading move involves high risk. You should always conduct your own research when making a decision in crypto investment.
Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on tumblr
Share on telegram
Share on whatsapp

Bruno Marques

Hi! I am the CEO/Founder of Crypto DeFinance, and I am an Enthusiast crypto investor. I started this project so we can provide you with carefully curated news. If you like us and our news, share the posts and comment. Your visit and interaction is very important to us.
Subscribe
Notify of
guest
3 Comentários
Most Voted
Newest Oldest
Inline Feedbacks
View all comments

[…] slightly exceeds the one that occurred in April of this year , which meant a reduction of the hashrate of […]

[…] exceeds the one that occurred in April of this year , which meant a reduction of the hashrate of […]

[…] many are concerned that China appears to want to ban Bitcoin, the ecosystem would have a low (and perhaps even positive) impact considering the true […]

MORE NEWS

Yield Farming is one of the main innovations brought by decentralized finance (DeFi) to the cryptocurrency market. And, without a doubt, it was one of the reasons for the explosion of these projects in the year 2020. So if you want to know more about what is Yield Farming, read further.

So, you want to know a little more about what are Liquidity Pools and how they work in the Defi Market?! In a small resume, Liquidity pools are the foundation of automated revenue-generating platforms. There are probably many other uses for them that have not yet been discovered. Read further to learn more.

bitcoin
Bitcoin (BTC) $ 42,322.00
ethereum
Ethereum (ETH) $ 2,873.64
cardano
Cardano (ADA) $ 2.06
binance-coin
Binance Coin (BNB) $ 355.19
dogecoin
Dogecoin (DOGE) $ 0.207890
matic-network
Polygon (MATIC) $ 1.09
pancakeswap-token
PancakeSwap (CAKE) $ 18.37
3
0
Would love your thoughts, please comment.x
()
x
Don't Miss The Latest Crypto News! Subscribe Now