The future of Bitcoin mining in other countries came bright following China’s crackdown as more hash rates fell off the network.
Last month, Beijing released measures to oust the crypto mining industry amid concerns over its impact on the environment.
As a result, digital asset miners flee from China to other countries.
Over the weekend, the crackdown intensified as authorities in the hydropower-rich Chinese province of Sichuan ordered miners to shut down operations.
Based on reports, over 90% of China’s Bitcoin mining capacity was estimated to be closed.
Analysts thought that between 65% to 75% of all crypto mining in the world takes place in the country.
The crackdown turned out to be bad news for miners based in China. However, it is a wecomed by those based outside the nation.
A miner said that the total global hash rate or processing power of the Bitcoin network came to sharply fall amidst the Chinese crackdown.
It was estimated that it fell from a record of 180.7 million terahashes per second in mid-May to around 116.2 million last Wednesday.
Cryptocurrency experts state that when some miners go offline due to the restrictions, other miners’ share of the network will surge.
Another thing that identifies profits to miners is the price of Bitcoin which declined from record highs in recent months.
This was due to the negative comments of Tesla CEO Elon Musk and China’s crypto shut down.
BTC’s price has nearly halved in value since it reached a record high of almost $65,000 last April.
On Tuesday, the largest cryptocurrency in the world plummeted below $30,000 which wiped out its 2021 gains.
China Ousted BTC.com
BTC.com is one of the world’s biggest crypto mining companies. On Saturday, June 19, they fled China after authorities cut their power supply.
Early this week, the firm announced that the first batch of its mining machines was relocated to Kazakhstan.
This follows a notification from the state grid in western Sichuan province. Officials announced that they will turn off the power supply to one of the company’s local data centers.
Consequently, other provinces such as inner Mongolia which were once hotspots for Bitcoin miners established public hotlines to report mining activities.
So far, at least three mining companies which include BTC.TOP, HashCow, and Huobi were forced to suspend operations.
In addition, several other provinces already made moves to oust the crypto mining platform out of the mainland.
Moreover, Xinjiang province officials ordered miners at Zhundong Economic-Technological Development Park to immediately cease their operations.