The Hash Power Surge Explained
In a jaw-dropping twist of fate, Bitcoin’s hash power has skyrocketed by approximately 30% within just 24 hours. That’s right, folks! If this trend continues, a significant difficulty adjustment might soon be on the horizon. Right now, the hash rate stands at an astonishing 157.5 exahashes per second (EH/s), even peeking over 160 EH/s briefly. This marks a remarkable 42% uptick in mere days.
The Rollercoaster of Bitcoin Mining
Remember the heart-pounding drops in October? The Bitcoin mining landscape came crashing down, mainly due to the end of the rainy season in Sichuan, China, where much of the mining occurs. Why Sichuan? This province, rich in hydroelectric power, lures around 80% of Chinese miners when the conditions are favorable. In fact, at one point, CoinShares estimated that Sichuan facilitated about 54% of global mining activity!
What’s Behind the Sudden Spike?
Quantum Economics analyst Jason Deane has his theories. He believes this sudden elevation in hash power signifies that many miners from Sichuan have bounced back to life and resumed operations in alternative mining hubs like Xinjian and Inner Mongolia. Looks like those miners were not just packing their bags for a vacation!
The Impending Difficulty Adjustment
With this mining frenzy, one could expect a significant difficulty adjustment coming down the pipeline. This adjustment is akin to throwing a wrench in the works for many non-Chinese miners who had been relishing higher profits after October’s 16% difficulty decrease—the second-largest negative adjustment in Bitcoin’s storied history.
A New Player in Mining
Just when you thought things couldn’t get any crazier, enter En+ Group, the world’s leading generator of hydroelectric power for the private sector. This Russian firm just announced a partnership with BitRiver to launch a cryptocurrency mining venture. Will we see yet another twist in the wild world of Bitcoin? Only time will tell!
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