Bitcoin Mining Hashrate Hit New 13-Month Low

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The bitcoin mining hashrate has hit a 13-month low following the further decline in mining activity in China.

The total hashrate on the bitcoin network currently stands at 101.9 TH / s. The last time the network saw such a low hashrate was in early June 2020.

The mining hashrate represents an important security metric for the blockchain. The higher the hashing power of the network, the more secure its overall resistance to attacks. The estimated drop in hash rate can be strongly attributed to recent Chinese bans on bitcoin mining.

The ban on mining in China, one of the main reasons

Recently, China has taken big steps to curb bitcoin mining in the country. China has also banned financial institutions from using crypto services. Bitcoin miners in China have already shut down their mining operations, with the majority of them looking for greener pastures to continue mining bitcoin.

BIT mining has started to move its operations to Kazakhstan. BIT mining was originally based in one of China’s bitcoin mining capitals, Sichuan. However, the company has stepped up its efforts by shipping more than 320 mining machines to its new location. The company plans to send an additional 2,700 mining rigs before the end of the month.

The trillion dollar mistake

China’s decision has had a devastating effect on the country’s mining industry. Essentially ending the country’s rule over the mining sector.

Bitcoin Maximalist and MicroStrategy CEO Michael Saylor recently commented on the country’s decision, calling it a trillion dollar error.

He added that China had 50% of the bitcoin market share and generated $ 10 billion per year, in a business that was growing 100% per year, year on year.

The crackdown in China has not slowed MicroStrategys’ desire to own more bitcoin, with the company buying an additional 13,005 BTC this week.

A not bad lower hashrate for bitcoin

The latest analysis on BeInCryptos’ channel covering the drop in hashrate acknowledged that while both hashrate and active addresses have been down from the recent all-time high of $ 64,800, the network is still seeing growth in user numbers.

The build-up continues as holders buy more bitcoin, liquidity also appears to be dwindling, hinting that there may soon be a downtrend reversal.

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