Bitcoin mining speed on the largest pools fell by 25%

19.04.2021 |

The largest mining pools lost up to 30% of capacity. It seemed that what could happen, except for a drop in the mining speed. However, the increasing popularity of the first cryptocurrency has led to an increase in the number of transactions, which requires more work. Thus, if a month ago more than 140 blocks were mined per day, now this parameter barely reaches a hundred. Now there are more than 100 000 transfers in the queue for confirmation.

And, if some experts attribute the incident to lower prices over the weekend, others are talking about another statement of analysts about the possible ban of digital gold in the United States. Although officials are expressing the opposite view, a number of experts are still discussing the topic.

However, it is more important to understand the causes of the bitcoin network’s decline, because it has had the greatest impact on the fall of quotations. A similar thing happened in August 2020, when heavy rains flooded a mining facility, so much so that the equipment and people had to be evacuated.

This time it started with an explosion at a coal mine. It is no secret that it is coal-fired power plants that still generate most of the capacity in China. Next, there was an explosion in Guizhou on April 9, and the next day it flooded Xinjiang. All of this led to a drop in fuel supplies to CHP plants, and generation declined. The mining companies, as one of the non “life-supporting” ones, were hit by the blackout. It is not yet clear when power supply will be restored, some experts are inclined to believe that we will have to wait for another difficulty recalculation to fully stabilize the bitcoin network.