The difficulty of the bitcoin mining rate has reportedly dropped by 28% after a significant drop in the hash rate. It took place due to China’s crackdown on the mining of cryptocurrency. It is making the largest decrease in mining difficulty past it went live in 2009, as per the report of The Block.
China’s cabinet, the State Council, last month has made the vow of clamping down on mining and trading of bitcoin as a part of a series of measures for controlling financial risks. The data on mining is scarce. Yet the production of bitcoins in China is getting accounted from last year for nearly 65% of the global production. Sichuan is the second-biggest bitcoin mining province in China, as the data of the University of Cambridge says. Sichuan is the second biggest producer of bitcoin.
Companies that are mining bitcoin are using a very energy-intensive process. They typically hold large inventories for cryptocurrencies with any of the moves for selling a large amount of the depressing pricing.
The authorities have urged the local government of Sichuan to start combining crypto mining projects and shut them down accordingly. It has banned newer projects. The other regional mining centers, which include Inner Mongolia, Xinjiang, and Yunnan, have ordered crackdowns on the mining of bitcoin.
The mining difficulty level in the bitcoin network is seeing an update almost every two weeks. As the crackdown on the mining farms in China is continuing, there is a more volatile trend since the adjustments made previously. As the previous adjustment was made on June 13, the seven-day moving average hash rate of bitcoin has fallen from the mark of 136.47 EH/s to 85 EH/s, which is down by 35%, as per the report. It got followed by the production of the slower block because the remaining hashing power could not keep up with a higher difficulty level.