Bitcoin network hashrate dropped 20%

19.05.2021 |

Bitcoin’s processing power has once again dropped by 20%. This is already the second drawdown of the hash rate this year, in April the shutdown of some major mining sites led to a decrease of 25%. Both times, the cryptocurrency market reacted to this news with significant drawdowns. Historically, computing power has a direct impact on the price of digital gold on online exchanges.

Whereas last time production rates fell due to mine accidents, the current disconnection of large consumers from the power grid is due to low output at hydroelectric power plants. Usually, with the arrival of spring, Sichuan begins a period of high water, which leads to an increase in green power production; this year, however, the low rainfall does not allow for an increase in electricity production. There are also still problems with coal production at emergency mines, which makes it impossible to replace the shortfall with the work of thermal power plants.

In addition, the Chinese government plans to reduce carbon dioxide emissions into the atmosphere. Peak pollution, according to calculations, will be reached in 2030. Then the authorities intend to restructure the economy so that by 2060 it will be possible to completely abandon fossil fuels.