Bitcoin [BTC] mining hash-rate has dropped to March lows after as inefficient and old generation miners are being driven out by low profitability. Nevertheless, the arrival of the flood season by the end of the month is expected to cause an uptrend in hash-rate with the availability of cheap electricity.
Miners Asked to Side-Step
China is witnessing a comparatively dry rainy season this year, this is increasing the cost of electricity for miners with the Government restricting mining in come areas as well. According to a report by blockbeats, the consumption has surged by over 20% while, ‘water inflow in every river basin of the province (Sichuan) was about 20% lower.’ This is putting a lot of pressure on thermal power plants.
Coupled with halving of mining rewards, this has been a worrying signal for the miners. Thomas Heller, the global business director at F2Pool, tweeted,
Due to the high temperature in Chengdu in recent days, priority for elec. has been given to residents rather than mining farms. This is why we saw a further drop in network hashrate a couple days ago.
While price dominates the mining action, the increase in the hash-rate during the hydro-season is…
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Author: Nivesh Rustgi