Bitcoin’s hashrate has experienced its most significant decline since 2024, primarily caused by the shutdown of approximately 400,000 mining machines in China. The hashrate measures the mining power of the Bitcoin network, and a reduction can impact the network’s security and mining efficiency. This downturn stems from government restrictions and rising electricity costs in China, forcing many mining farms to close temporarily or permanently. Historically, China has been a major hub for Bitcoin mining, hosting the largest number of active mining machines worldwide. However, stringent regulations and energy challenges in recent years have weakened the industry. A lower hashrate may slow transaction processing and affect network security, although increased mining activity in other countries could partially offset this decline. Fluctuations in Bitcoin’s hashrate reflect competition among miners and changes in energy expenses, highlighting the global challenges faced by the mining sector, especially in regions with uncertain policies or energy pricing. Moving forward, if mining remains restricted in China, the Bitcoin network will need to expand mining capacity elsewhere to maintain its security and performance.
Source: coindesk
