From April 16, the bitcoin hash rate began to fall. Experts believe that this was due to a power outage in parts of China’s Xinjiang province.
On April 22, TheBlock reported on the gradual restoration of miners’ work, but the previous values are still far away.
Local authorities have indeed begun to restore the electricity supply.
However, some of the equipment is still without power. Due to the large size of the province, there is a gradual restoration of electricity. Therefore, most households are still without electricity.
The reasons:
- On April 16, due to several accidents at mining farms, the Chinese authorities ordered an inspection of the equipment. The miners said that the technical inspection could take a week.
- Dry season. From October to May, the southwest region experiences drought, which negatively affects hydropower resources.
Experts have found positive aspects of the fall. Since the Chinese miners were temporarily without electricity, the drop was not so significant. 80% of Chinese mining companies were based in Xinjiang, but the drop was no more than 40%. This suggests that China can no longer be called a monopoly in bitcoin mining.