China’s latest ban and crackdown on local crypto mining operations has been a nightmare for several Chinese operators. On Saturday, June 19, the Chinese authorities targeted the Sichuan province asking local government bodies to investigate and shut down Bitcoin mining operations.
This has resulted in a severe drop in the BTC hashrate of Chinese mining pools while ultimately benefitting the American mining pools. America’s Foundry USA mining pool has made its way to the top ten spots and probably the only pool with an increased hashrate over the last 24 hours.
— Documenting Bitcoin 📄 (@DocumentingBTC) June 19, 2021
Becoming the seventh most powerful mining pool is a major milestone for Foundry and comes within a very short span of time since its launch. Amid the recent crackdown, a number of Chinese miners have been shifting their operations to America.
Places like Texas and Miami in the U.S. have already started wooing Chinese players by offering low-cost energy incentives. The Bitcoin-friendly Miami Mayor Francis Suarez by tapping into the city’s clean nuclear power resources.
The Drop In the BTC Hashrate of China’s Biggest Mining Pools
Amid the crackdown on the Sichuan province on Saturday, June 19, the BTC hashrate for one of China’s biggest mining pools crashed down significantly. With this, AntPool dropped to the third position after F2Pool and ViaBTC.
— 8BTCnews (@btcinchina) June 20, 2021
On the other hand, the current real-time computing power of the entire Bitcoin network is 126.26 EH/s, dropping significantly over the last month. Chinese crypto-journalist Wu Blockchain reports that post the Sichuan crackdown on Saturday, the Bitcoin block times had shot to one hour yesterday.
After most big mining farms were shut down in Sichuan, the Bitcoin network once again had a block time of more than 1 hour last night. On June 12, there was a block production time of nearly 2 hours. pic.twitter.com/KOLCp6z5gb
— Wu Blockchain (@WuBlockchain) June 20, 2021
Over the last two days, the BTC hashrate of the top-five mining pools has corrected by nearly 25%. At the same time, 1Thash, the private mining pool of Sichuan-based Valarhash, has been the most affected with its BTC hashrate dropping 46% in the last 24 hours. The crypto mining industry is seeing major changes with America looking to take away the dominance of controlling the BTC hashrate from America.