Extraction data aggregators attribute a drop in Bitcoin hashing rate toward the end of the wet season in Sichuan, as a result of which many miners migrate to other jurisdictions.
On October 26, Thomas Heller of the Bitcoin Digging Blog (BTC) Hashr8 reported that approximately 22 exaxes per second (EH / s) of extraction power had left the Bitcoin network, coinciding with the end of the previous day’s season (based on weather forecasts).
Kevin Zhang of the Digital Currency Group Foundry subsidiary, focused on yield, also estimated a drop of 20 EH / s, noting that the average value for the seven-day Bitcoin hashrate is 132.9 EH / s, while the simultaneous hashing rate is 1
Blockchain.com estimates that Bitcoin’s hashing rate dropped from 151.1 EH / s on October 24 to 116.3 EH / s the next day.
Sichuan Province is one of the largest mining centers in the world. Miners flock there to take advantage of cheap hydroelectric power during the rainy season and then leave just as quickly.
The latest data from the Bitcoin Electricity Consumption Index (BECI) of the University of Cambridge estimates that the province represents 18.5% of the global hashing rate by April 2020 – which is twice as high as before the rainy season .
Heller predicts that many miners working in Sichuan will move abroad or to the provinces of Xinjiang or Inner Mongolia, representing 30.1% and 7.7% of the world’s hash capacity, respectively, in April.
In 2018, it was estimated that 80% of Chinese miners migrate to Sichuan for the rainy season from other parts of the country. CoinShares data released in December 2019 estimate that Sichuan accounts for 54% of global mining
Heller also shared data that estimates the next correction of difficulties in digging bitcoins at the end of this week will see a decrease between 7.4% and 8.8%. If true, the event will include the second-largest negative correction for 2020 after a nearly 16% drop since the Black Thursday crash in March.