The closure of Chinese mining farms has caused the Bitcoin hash rate to drop and manufacturers of mining equipment to suspend sales. The migration of Chinese miners could change the patterns of CO2 emissions, but they could cause the cost of electricity bills to increase.

The ban by the Chinese government on Bitcoin mining has affected all the activities related to the pioneering cryptocurrency. However, it has mainly harmed its hash rate, which has dropped from 130 EH/s to less than 77 EH/s.

The measures of the Chinese government have also affected the mining of Ether (BTC), the second cryptocurrency on the market. According to graphic cards, the price of the altcoin has suffered significant drops due to such restrictions.

The repression against crypto assets in the Asian country has also forced manufacturers of cryptocurrency mining devices to suspend sales. Additionally, many of them have decided to move abroad as they want to avoid any confrontations with the Chinese authorities.

A Manufacturer of Bitcoin Mining Equipment Suspends Sales

In recent days, the manufacturer of Bitcoin mining equipment Bitmain announced that it would suspend sales. The selling pressure in the secondary market caused a decrease in the price of the devices. Nobody knows yet when the company may resume sales.

However, the impact of Bitmain’s suspension of their sales has not generated too high an impact. For over a year, they have limited themselves to dealing with a group of large mining companies.

The Levels of the Bitcoin Hash Rate Drop to Those of 2019

Last week, the hash rate of the Bitcoin blockchain network fell to levels of 2020. The massive closure of mining farms has led the computing power to drop to 77 EH/s, the lowest level since 2019.

Some analysts are concerned about this decline as it could harm the security of the network. However, this could be just a temporary effect of the disconnections of equipment in China. The only good thing about it is that the prices of cryptocurrency mining machines have fallen considerably. This situation has allowed access to the business to become much cheaper.

Bitfarms Starts Trading on the New York Stock Exchange

The Canadian Bitcoin mining company Bitfarms recently began its operations on Nasdaq. The shares of the company started to trade at USD 3.90 per unit. It is a new firm focusing on cryptocurrency mining that operates on the New York stock exchange.

This year, Bitfarms has earned around 1,000 BTC thanks to the use of renewable energy. In that sense, the increased migration of Chinese miners could change the patterns of CO2 emissions into the atmosphere.

Mining Problems that the Antecedent of Plattsburgh Could Cause

Former mayor of Plattsburgh, Collin Read, recently talked about one of  the most relevant issues related to Bitcoin mining. In a small town located in upstate New York, miners underwent a terrible experience while doing their activity.

Read told CNBC that miners do not contribute much to Plattsburgh as they do not generate enough jobs. He added that the high demand for energy leads to an increase in the costs of electricity bills.

Even though Read is a Cryptocurrency enthusiast, he considers that it is necessary to think carefully before accepting the Chinese diaspora. He also warned that nobody should overvalue Bitcoin mining even if it is an important business.

By Willmen Blanco

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