Bitcoin’s hash rate went from 111.8520 EH/s on November 8th to 161.9267 EH/s on November 10th. This movement represented a 42% increase in just 48 hours.
According to analysts, this growth in the Bitcoin hash rate could represent an adjustment in the difficulty of mining. This indicates that a significant adjustment of the difficulty will occur soon. Until a few days ago, it had shown a 16% drop, but the hash rate has fallen again.
Digital asset mining profitability results portal Coinwarz indicates that Bitcoin’s hash rate recently had a speed of 157.5 EH/s. This occurred after it briefly exceeded 160 EH/s. At the time of writing this article, the hash rate has dropped to 122.4194 EH/s.
Decrease in Hash Power Due to End of Rainy Season
There was a broad depreciation of reported hash power at the end of October, as the peak indicates. Various analysts attribute it to the end of the rainy season in the Sichuan mining center in China. Eighty percent of the China-based miners in China are located there. According to CoinShares, this group represents 54% of the world’s mining activity.
Thomas Heller, COO of the Bitcoin mining blog Hashr8, reported on October 26th that about 22 EH/s of mining power had left the Bitcoin network. This event coincided with the end of the rainy season on the previous day.
Jason Deane, a current analyst at Quantum Economics, speculated on the recent growth of Bitcoin’s hash power. He said that this could mean that a large number of Chinese miners have completed their migration from Sichuan. Furthermore, it would be a sign that they have restored their operations in other local mining centers such as Xinjian and Inner Mongolia.
Increase in Bitcoin’s Difficulty
The sudden increase in mining activity may suggest that the network could be able to make another significant difficulty adjustment shortly.
The most recent significant adjustment in BTC mining difficulty occurred on November 3rd. It is related to the migration of miners from Sichuan. This adjustment brought the mining difficulty down by 16%. This is the second-largest downward adjustment that Satoshi Nakamoto’s asset has recorded in its history.
This adjustment could end the paradise in meanwhich some miners had lived by benefiting from Bitcoin’s price rise and the drop in mining difficulty. The reason for this is that less difficulty leads to spending fewer resources, so there is higher income.
En+ Group Announces Launch of Crypto-Asset Mining Company
The Russian company En+ Group is the world’s largest hydroelectric power generator for the private sector. They announced their plans to launch a digital asset mining consortium in association with local company BitRiver.
That new firm seeks to focus on creating facilities that can support crypto mining, using of a relatively low carbon footprint.
This startup operates the largest data center, which provides a series of brokerage services for Bitcoin mining within the Russian Federation.
By Alexander Salazar
