The Bitcoin hash rate has hit a new eight-month low. The BTC mining ban in China is having an effect and supports bearish stimming in the market. Overall, the bitcoin hash rate has been over the last 5. decreased by more than 40% Weeks. China is trying to strengthen its own digital currency with a BTC mining and trading system Ban.
While the Bitcoin hash rate hit a local low, the Bitcoin price failed to break the all-important $ 42,000 mark again. As a result, the BTC price fell below $ 33,400 Sunday. The large-scale ban on Bitcoin mining in China has pushed the hash rate down for the time being.
China is vehemently enforcing the mining ban and forcing mining companies to cease operations to a certain extent Deadline. Partly with unannounced searches to “speed up” process. Bitcoin miners have to look for new locations or permanently cease operations and sell their mining hardware.
Before the ban, the share of the total hash rate in China was over 60%. This share, which is also one of the biggest criticisms of the decentralization of Bitcoin, currently falls suddenly and spreads worldwide. In addition, many new mining farms, such as those based in North America, are using sustainable energy sources. This development thus further promotes green BTC Mining. According to Cambridge University, 39% of the total Bitcoin hash rate currently comes from sustainable energy swell.
This not only eliminates the criticism of hash rate centralization in China, but also the debate about environmentally harmful ones BTC Coal-powered mining in China. Nevertheless, the effects of the ban will have a negative impact on Bitcoin in the short term price. In the long term, that is development for the worldwide introduction of the decentralized payment network is to be rated positively.
Due to the collapse of the BTC hash rate, the level of difficulty has adjusted downwards in recent weeks and the search for new blocks for the easier miners. The mining difficulty ensures that every block is found every 10 minutes average. It is precisely this mechanism that ensures that Bitcoin will reach a maximum number of 21 million BTC per year 2140.
The Bitcoin mining ban in China goes hand in hand with the country’s efforts to get the digital yuan, which is currently gaining popularity among the population. In the competition to register for banking apps, users can win 200,000 packages with 200 digital yuan everyone.
China is currently trying to get a head start on central bank digital currencies (CBDC). Because the USA, the EU and other countries are also planning their own digital currency in the coming years. BTC has triggered a veritable trend in the past decade. The race for digital currencies is entering the first hot phase. Bitcoin as the only alternative to digital currencies from the various central banks will play a very important role in this decade.
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