By Larry Wright
Bitcoin is subjected to one of the biggest difficulty adjustments and might possibly be the hardest of them all in the coming days, and the hash rate of the cryptocurrency has fallen to 40%, which marks a one-year low. The very effect of China’s crackdown against the Bitcoin miners and hash rate stabilizers has led to such brimming day that brims full of darkness for the future of Bitcoin.
All of this has to come along when Bitcoin is to face the hardest difficult adjustment the cryptocurrency has seen during its course. China continues to suspend mining operations leading miners in jeopardy and absent motivation to continue mining the cryptocurrency even if it is far from the shores of China.
Only those who can afford to do so or move as an organizational unit will be able to shift their mining equipment to some decent piece of land such as the USA or even Europe, while for the others, it concludes their mining journey forever in China. At first, it was a catastrophe, an incident that took place in one of the coal mines in China from where coal was harvested only to be used in the production of electricity.
During this incident, hundreds were injured, and a handful was even deprived of life, and this is the point where the cryptocurrency’s hash rate reduced to 60%. It can’t be said with much surety whether this was the very action that initiated the crackdown that China is yet going at so ferociously or was it their green movement according to which the carbon footprint within the region has to be cut towards a dismissive number. Whatever it is, China is doing an excellent job at it, and all the repercussions are to be showered on Bitcoin.
This ambient decline in the hash rate means that the stability of Bitcoin’s blockchain is questionable. There are vibes of chaos and panic in the crypto mining community as the processing power required to validate every transaction taking place on the blockchain will be badly affected. To that effect, the difficulty adjustment, which is a small process that keeps the hash rate of cryptocurrency well within range, activates, meaning the mining would become easier, thus stabilizing the hash rate even if the number of miners doesn’t soon increase.