Bitcoin’s Hash Rate Decreases Dramatically As Miners Leave the Game
In May, the first world’s cryptocurrency overall lost 36% of its value. Most blame it for Elon Musk and news from China and Iran but some experts believe the decreasing hash rate of Bitcoin may have contributed a lot to its downfall. It showed a 27% decline in the last two weeks of May, according to Bitinfocharts.
The co-founder of LAZM data center, Roman Nekrasov, believes that the market’s crash on May 19th triggered the hash rate decline. A part of the equipment used for mining Bitcoins was switched to the other projects or off, depending on the potential financial losses for miners. Mining is costly due to the expenses on electro energy, equipment and its maintenance so they don’t want to waste their capacities for something that won’t bring them enough profit, as it turned out with Bitcoin’s crash.
Jahon Habilov, the CEO of a mining pool, blames the hash rate decline on Chinese regulators that forced miners to move their ASICs abroad due to the limits put by them over the industry. The weather in China also matters here. As miners use a lot of hydroelectric power, the dry season didn’t leave them much of it. Habilov thinks there are few chances the Bitcoin’s hash rate will show an intensive growth soon.