China’s restrictions on bitcoin mining and the consequent cessation of miners’ activity have greatly reduced the bitcoin network hash rate. Reducing hash rates is likely to negatively improve network hardness, resulting in an unprecedented increase in miners’ revenue.
to the the report Slush Pool, one of the largest bitcoin mining pools, has announced that, based on the timing of the recent blockchain production, the bitcoin network hardness may drop by as much as 25 percent, which is unprecedented in its kind. This important indicator determines the difficulty of extracting new blocks and, consequently, the amount of miners’ rewards.
There is currently a 20% chance that the network hardness will drop; The fall of this difficulty can lead to the growth of miners’ incomes.
According to Slash Money estimates, the profitability of the remaining ASIC miners in the network is much higher than what was predicted for 2021. This extraction pool said:
While hundreds of thousands of ASICs are idle in trucks, cargo ships, aircraft, and warehouses, those that remain online are more profitable and valuable.
For example, the Antminer S19 Pro mining machine could generate 86,700 satoshi per day after correcting the network hardness next week.
According to information provided by BitinfoCharts, the bitcoin hash rate reached 83.4 exacerbations per second from its lowest level on July 5, 2020. This decline shows a decrease of 51% compared to its highest level on May 13 (May 23). At that date, the hash rate was about 171 exacerbations per second.
Officials in Xinjiang and Sichuan, China’s two largest bitcoin mining hubs, have instructed miners to stop operating as soon as possible.
Coin Zhang, vice president of the Foundry Mining Company, recently claimed that 90 percent of Chinese miners would cease operations by the end of July. On the other hand, Chinese miners are said to be migrating to Central Asia, the United States and Russia.