The Bitcoin hashrate has reached its lowest level since November 2020 with many seeing this as being the result of China’s recent crackdown on crypto mining combined with the concerns over the energy consumption of the activity.
The seven-day average hashrate fell to 129.1 million exahashes per second two days ago, quite a difference from the ATH of 180.6 million exahashes per second that were registered in mid-May. Still, it is up from the 105.6 million registered a year ago.
The Xinjiang Uygur Autonomous Region, the Inner Mongolia Autonomous Region, and Qinghai province have confirmed they are shutting down crypto mines. Yunnan province plans to crack down on illegal operations, while officials in Sichuan province are also working on stifling crypto.
China-based 1THash, which was one of the 15 biggest mining pools on the globe, lost around 70% of its hashrate the previous week.
“Zooming out, the size and rate of the latest decrease is consistent with other previous drops,” declared Zack Voell, content director at Compass Mining. “After machines shuffle around the map and hash power relocates to new regions, the steady growth of Bitcoin’s hashrate should resume.”