The flood that trapped 21 workers at a coal mine in the Xinjiang region, located in western China, on April 10, also affected Bitcoin. With many mining farms in the area left without electricity to power their business, the cryptocurrency’s hash rate has plummeted, reports Bitcoin Magazine.
A strategic region
The hash rate is an index that measures the processing capacity of the entire Bitcoin network. The more miners are available for data processing, the higher the hash rate, the more the network can resolve operations. By April 15, Antpool’s hash rate fell 24.5% in 24 hours, Binance Pool’s hash rate fell 20% that of BTC. com by 18.9% and finally that of Poolin by 33%.
Such an incident might have been trivial for Bitcoin in another territory, but along with that of Sichuan, the Xinjiang region hosts most of the Chinese mining farms. This episode also had an impact on the value of Bitcoin, which went from 52,832 euros on Wednesday to 47,005 on Monday. The fact that Turkey decided to ban cryptocurrency payments on its territory must also have had an impact on this fall.