- Chinese miners in the south of China switched off their trading equipment and slowed down their work for Bitcoin over the past few days.
- The Bitcoin miners were not able to continue with their usual tasks of solving complex math problems for traders.
- Between June and October, the drought in South China impacted the cheap hydro-energy that these tech geniuses usually gather around and made it more expensive.
Chinese miners pause their Bitcoin operations in search of cheaper electricity
Chinese miners in the south of China switched off their trading equipment and slowed down their work for Bitcoin over the past few days. The Bitcoin miners were not able to continue with their usual tasks of solving complex math problems for traders.
Between June and October, there was a drought in South China which impacted the cheap hydro-energy that these tech geniuses usually gather around making it more expensive. Due to the expensive electricity, the workers had to move themselves to cheaper areas in China.
Usually, the speed people solve the problems from the digital realm is accelerating but what followed the electrical emergency was a sharp decline in this rate.
The graph above shows how the recent events in October have resulted in a 10% fall, over ten days, in productivity. China is a mining hub because China houses 65% of the hash rate for Bitcoin.
The crypto heroes moved because they usually have to use a lot of energy to run Bitcoin. In the past, when electricity became more expensive Chinese miners had to re-locate and, the hash rate decreased.
The good news is that in the short term, the decline in the productivity of solving mathematical problems will not directly affect Bitcoin. Yesterday, Bitcoin prices increased.
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