Bitcoin network hashrate dropped due to bad weather in China. What is happening there?

The largest mining pools in China are experiencing problems with their ASIC miners for mining cryptocurrencies – it's all to blame for prolonged downpours in the Sichuan province. Unfavorable weather conditions caused power outages, due to which the hash rate of local pools dropped by at least ten percent. Pool representatives confirmed the problems and shared details of what was happening.


Напомним, в Китае действительно сосредоточены огромные объёмы вычислительных мощностей для майнинга. Информация в очередной раз подтвердилась благодаря усилиям представителей Кембриджского центра альтернативных финансов (CCAF), который входит в состав Кембриджской бизнес-школы при Кембриджском университете. Они запустили интерактивную карту с демонстрацией распределения хешрейта сети Биткоина в мире. Тогда на Китай приходилось 65 процентов сети.

We checked the data on the website: China has 65.08 percent of the total network capacity. The United States ranks second with 7.24 percent, and Russia is in third. She has 6.90 percent of the total hash rate.

country hashrate

Distribution of the hashrate of the Bitcoin network by country

Судя по данным в верхней части страницы, создатели карты её не обновляют: последним доступным месяцем является апрель. Возможно, апдейт состоится по окончании квартала, так что пока остаётся ждать.

What's going on with the Bitcoin network

The Sichuan province in southwest China has a huge concentration of Bitcoin mining centers : according to some estimates, up to 50 percent of the total hashrate of the cryptocurrency is concentrated in this region. Due to the downpours, local mining pools are experiencing problems with the supply of electricity, internet and other telecommunications.

According to BTC.com, the hashrate of the four largest Bitcoin mining pools – Poolin, F2Pool , BTC.com, and Antpool – fell by 15.99, 02.21, 8.20 and 10.63 percent, respectively . Together, these four pools control about half of the BTC hashrate.

Bitcoin mining blockchain

Changes in the ranking of the largest Bitcoin pools by hashrate

Обратите внимание, что доли некоторых пулов снизились на более чем 20 процентов. Рекордсменом здесь оказался 58COIN&1THash — в случае с данной платформой проседание составило 33.5 процента.

Poolin CEO Kevin Pan noted that power surges can cause equipment breakdown, so pools forcefully disconnect some ASIC miners from the network . In addition, companies are evacuating personnel and asiks from places where weather conditions are most dangerous. Unfortunately, it is not yet known exactly when we can count on the end of natural disasters.

According to Xinhua News Agency, rainfall in the top ten hardest-hit cities in Sichuan province has already exceeded the monthly average between August 10 and 15. In addition, a major motorway that leads to the Sichuan highlands is closed due to severe flooding. This is where most of the crypto farms are located.

Bitcoin hashrate has dropped over the past couple of days from 136.95 to 110.09 exahesh per second yesterday , according to BitInfoCharts, an analytical platform. Here is the actual data for the indicator.

Bitcoin hashrate chart

Bitcoin hashrate chart since early August

And here is the distribution of the hash rate by mining pools for the last day. Note that the four largest sites – F2Pool, Poolin, AntPool and BTC.com – account for 60.1 percent of the entire network. Accordingly, they control more than half of the computing power of the network.

Bitcoin hashrate distribution

Distribution of the Bitcoin hash rate by mining pools


Мы считаем, что в происходящем нет ничего страшного и необычного. Всё же так называемый сезон дождей — регулярное событие для Китая. Именно во время него обилие воды заставляет майнеров делать перерывы в процессе добычи криптовалют и отключать своё оборудование. Со временем ситуация наладится, а хешрейт начнёт расти.

Note that the hashrate is growing contrary to all analysts' spring forecasts. In the first half of May, a Bitcoin halving took place, which halved the reward for a block of cryptocurrency. Instead of 12.5, miners began to receive 6.25 BTC per block – and this is a noticeable drawdown. But even this fact did not make them deliberately turn off the equipment. Apparently, ASIC owners hope for the growth of the cryptocurrency rate in the near future, which will allow them to cover expenses and earn money. We hope they are not wrong.

Let's hope that the situation will return to normal soon and the miners will return to work. Follow the development of the situation in our crypto chat . We are also waiting for you in Yandex Zen – there are articles that are not on the site.

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