Miners and prospective miners may see some opportunity here.
According to reports, the difficulty of mining Bitcoin has decreased by 16%. This decrease is caused by the number of Chinese miners who have stopped mining due to China’s Bitcoin crackdown.
If regulations continue to tighten in China there may be more opportunities like this coming down the pipeline.
Take a look:
Trending: Hong Kong Is Cracking Down On Crypto
In about 3 hours the bitcoin mining difficulty will get reduced by about 16%. Yes, in the coming two weeks it will be easier to mine new blocks. (No, the newspapers telling you that bitcoin mining is getting more difficult every day, are not telling the truth.)
— Vorstand (@Vorstand1) May 29, 2021
Bitcoin Mining Gets 16% Easier As Chinese Miners Anticipate Crackdown
As the Chinese government prepares to crack down on Bitcoin mining, the mining difficulty suffers its greatest decrease this year.
— Sir Mj THEGREAT (@jamiil__) May 30, 2021
Decrypt had more details:
Bitcoin’s mining difficulty fell by 16% on Sunday to 21 trillion, the sharpest decrease this year. The correction suggests that Chinese miners are pulling the plug in advance of further crackdowns on mining by the government.
Bitcoin mining difficulty measures how much computer power is required to produce new Bitcoin. The network adjusts the difficulty (roughly) once a fortnight to reflect the level of competition among miners. Lower mining difficulty indicates less competition.
More than 75% of the miners that validate Bitcoin transactions are based in China. Last Friday, the government added Bitcoin mining to a list of industries that required monitoring in order to protect the economy.
2. Inner Mongolia's energy consumption reduction is not up to beijing's standard, so it is the most active to crack down mining
3. Mining is of no use to the real economy, and even seizes the production capacity of other chips
— Wu Blockchain (@WuBlockchain) May 30, 2021
Bitcoin Mining Gets 16% Easier As Chinese Miners Anticipate Crackdownhttps://t.co/TdSjiR7LPo
— Cryptonick New's (@SCryptonick) May 30, 2021
Yahoo Finance had more on China’s crypto crackdown:
Energy regulators in China’s Sichuan province will soon meet local power companies to gather information on cryptocurrency mining, an official said, potentially leading to a clampdown in the country’s second-biggest bitcoin production hub.
China’s central government vowed last week to crack down on bitcoin mining and trading, while this week Inner Mongolia, also a major mining centre, proposed measures to root out the business. Such measures are accelerating a shift of mining activities to North America and Central Asia.
An official at the Sichuan Energy Regulatory Office of National Energy Administration told Reuters that Sichuan was not the only province gathering information on crypto mining.
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