Anhui, a province in eastern China, has become the latest location to halt all crypto mining operations, claiming a severe power constraint. Crypto mining remains unwanted on Chinese territory as officials continue to tighten down on the industry.
Bitcoin mining has been subjected to a stepped-up crackdown.
According to Reuters, the state-owned Hefei Media Group operates a news platform. According to the announcement:
“Anhui will shut down all crypto mining projects in a cleanup aimed at reducing power consumption, as the province faces a ‘grave’ supply shortage of electricity.”
In late May, China’s State Council said that it would tighten its Bitcoin (BTC) mining and trade crackdown. As a result, Anhui joins Xinjiang, Inner Mongolia, and Sichuan as the latest Chinese province to crack down on cryptocurrency mining.
Chinese officials in Sichuan unplugged BTC mining sites in June. As a result, over 90% of China’s cryptocurrency mining capacity has been hindered. China contributed almost 70% of global Bitcoin output before the crackdown began.
Bitcoin’s hashrate is decreasing
The BTC network’s hashrate has been impacted by China’s strict crypto mining regulations.
BTC’s hashrate dropped from a peak of 180.7 million terahashes per second in mid-May to around 116.2 million in late June. The hashrate is a measurement of the BTC network’s processing power. It allows computers to process and solve problems to authorize and confirm transactions across a network.
The Chinese limitations have impacted the whole crypto industry, with exchange trade volumes dropping by more than 40% in June. As a result, Bitcoin’s average 6-month return fell to -27.81 percent.
Nonetheless, several crypto experts have already stated that BTC mining may become more accessible and profitable due to China’s limitations. They admitted that Bitcoin miners that continue to operate after China’s ban are expected to make more money. As more miners leave the BTC network, the number of computing guesses per second required to solve the mathematical problem decreases.