Bitcoin mining has witnessed big moves as the Chinese miners complete the migration from Sichuan. The cream de la cream of crypto surge with up to 40% in two days when it comes to mining hash rates. BTC’s hash rate has rebounded, booking a whopping 30% increase from the quarterly lows as the miners move out of the mining hub. The high cost of mining power has been crippling the industry. In October, crypto mining faced a setback as China’s Sichuan province experienced an end to the rainy season. This prompted miners to switch off their machines due to the power shortage. It seems that most of the engines turned off in October are now online.
Sichuan contributes to 80% of BTC mining activities in China in October. This is primarily due to the abundant and affordable hydroelectric power during the wet season. It’s estimated that the hub controls about 54% of global bitcoin mining activities.
Reports from the Asian nation indicate that most Bitcoin miners are moving from Sichuan to other regions like Inner Mongolia and other areas as they try to focus on cheaper power sources. In an interview with CoinDesk, Luxor Technologies’s CEO Ethan Vera sighted that this year’s migration is different from the previous ones. Some miners choose to leave China getting comfortable to set base in low- costing mining destinations like Venezuela, Kazakhstan, and Iran.
Jason Deane, Quantum’s economic analyst, relates the sudden spike in hash rates complete migration by the Chinese miners to traditional mining hubs like Xinjian.
Jason tweeted :
“Whoa! Big jump in #bitcoin hash rate over the last 10 hours, +29.7% through to peak. A large number of machines just came online somewhere relocated Sichuan region miner possibly?”
Following the return of the mining power, the congested Bitcoin mempool is now clearing up as miners confirm the pending transactions. Data shows that the mempool recorded its all-time high on October 28th; this is the highest number of pending transactions since 2018. The rebound of the hash rates brings the mempool transaction to an equilibrium.
It is, however, essential to note that not mining machines turned off in October are back online and F2Pool’s CMO, Qingfei Lei expects the mining hash rate to increase over the coming weeks rapidly. Bitcoin’s sits at 157.5 EH/s after a slight push towards 161 EH/s, on 10th November 2020, hence surging by 42% in the last 48 hours. Most of the mining machines were back online by then.
Bitcoin is likely to experience another vital difficulty adjustment following the sudden spike in the mining hash rate. This comes after bitcoin’s network booked its second-largest downwards adjustment in its history. BTC hash rate dipped 16% last in recent weeks. The digital asset booked its all-time high at around 170 EH/s.
On the 27th of October 2020, the hash rate dipped to 90 exahash per second or EH/s on the 24hrs moving average helping the mining difficulty to drop. On November 3rd, during the difficulty drop, the hash rate was sitting at 97 EH/s. Luxor’s mining index puts the weekly during this period’s hash rate to an average of 124 EH/s. According to the mining pool, the bitcoin’s system growth relatively stagnates its prices with lower than usual fees.
The pricing of mining BTC is currently cheaper and more profitable from the previous week. It now costs miners $0.12per kilowatt-hour in BTC mining; hence the miners are ripping big. Today the Bitcoin’s median transaction fee is at around $2.87 as the next block books a $9.25. The transaction queue on the mempool has dropped from October’s 121 thousand pending transactions to only 21 thousand unconfirmed BTC transactions.