Bitcoin’s Hashrate Plunges

bitcoin hashrate plunges nov 1 2020

Bitcoin’s hashrate has fallen significantly from 146 exahashes a second to 113 with it to see one of the biggest difficulty adjustments ever. After a sharp rise since May 2020, this sharp drop of some 23% is somewhat surprising, but there are a few explenation. The simplest is that the rainy season in China has ended, thus the temporary period of cheap energy has ended with it. Yearly, in remote parts of China even floods of mining farms are reported after heavy rains which fill the dams, with miners taking advantage of it by turning on old gear and/or by running at full capacity. With that abundance over, miners have just adjusted, but the peak of this was in July, so this explanation does not fully fit in now three months on. It could well be therefore that just too many turned on their gear in the hope of profit,…

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