Along with the volatility of the exchange rate, the jumps in the difficulty of Bitcoin mining are also growing. On Sunday, after the next recalculation of the difficulty, it decreased immediately by 16%.
Mining difficulty was recalculated at block 685 440. Now the figure is 21.05 trillion, and this is a decrease of 16% from the previous value. Over the past six years, the fall in the difficulty of Bitcoin mining over 15% happened only 4 times.
It is most likely that the drop in the hash rate, and then the difficulty of mining, is due to the shutdown of miners in the Chinese province of Sichuan. The drop in hashrate began on May 13, and then continued against the backdrop of a statement by the Chinese government about a possible ban on mining in the country.
According to Edward Evenson, director of development at Braiins, which owns the oldest mining pool Slush Pool, Chinese miners have significantly accelerated the withdrawal of capacities from the Middle Kingdom. The equipment is distributed both among neighboring countries and exported to North America. Also, Chinese miners slowed down the pace of purchases of new equipment. After the end of the farm moves, the difficulty can quickly return to its previous values.
Recall that the authorities of the Chinese province of Sichuan will hold a special seminar this week, during which they will try to determine the impact of the mining ban on the revenues and payback of hydropower.