Bitcoin hashrate is still “seasonal”

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2021-03-22 23:33:30

Problems related to bitcoin mining have always been paid special attention by the community; from day one to the most recent halving.

Bitcoin hashrate is still “seasonal”

In the latest episode of podcast On the BrinkApolline Blandin, head of crypto research at Cambridge Center for Alternative Finance, discussed how energy and geographic distribution as key variables for Bitcoin’s network and mining ecosystem it. Blandin notes that in the case of Bitcoin, there has been a notable move in hashrate.

While China’s Sichuan province is known to be the capital of Bitcoin miners, Blandin says the area sees “seasonal” migration.

The rainy season in Sichuan is from May to the end of October. In September and October on the map, this area provided about 37% of the hashrate for the Bitcoin network. But after the rainy season ended, many miners moved to other areas such as Inner Mongolia and Mongolia

The main reason Bitcoin miners choose to settle in such areas is due to their dependence on hydroelectricity in those areas. During monsoons, excess energy is generated and Bitcoin miners can utilize low-cost energy to maintain operations at optimal cost.

According to Blandin, China’s energy security policies have contributed significantly to the advantage of the miners in this country.

During the rainy season more electricity is generated than needed. A few weeks ago, we even saw a city in Sichuan calling for miners to come and install some facilities there to tap this surplus energy.

With a block reward currently at 6.25BTC, such factors are crucial to the operational planning of major mining facilities.

According to the data on the blockchain, after halving the block reward for the third time, the hashrate on the Bitcoin network has dropped significantly.

In fact, Arcane’s latest report cited data from Bytetree showing that miners are currently open to sell BTC stored in miners’ warehouses in order to maintain profitability with block rewards being lost. cuts. Referring to the MRI index, the report noted,

An MRI machine over 100% means that miners are selling more coins than they mine. The only way to do this is for miners to have to sell off their Bitcoin reserves in the previous period.

According to AMBCrypto

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