The total hash rate of the ethereum cryptocurrency network has fallen by 19% in just one month. This is the total power generated by the generator blocks and represents the amount of hardware that is directed towards the GPU-centric algorithm. This sharp drop in the network hash rate only highlights the huge impact the industry has had on China’s recent cryptographic crackdown.
You can see it in the chart below (via Etherscan) that the hash rate has begun to decline after the recent and significant falls. This would seem to suggest that this is based solely on the systemic shutdown of graphics card mines in China.
The Chinese government has tried to wipe out cryptocurrency mining in many regions, such as Sichuan, Yunnan and Inner Mongolia, those where energy costs were lowest, due to the high level of resources those operations consumed. At the same time, the country’s financial institutions have carried out their own, perhaps government obligation, debugging services and cryptocurrency operations.
All this means that GPU mining in China, where most of the world’s graphics card mines are located, is becoming an increasingly unattractive company. This has led to the emergence of a growing wave of second-hand graphics cards for prices sometimes close to the PDSM.
From a high of 643.81 TH / s in May, we are now seeing a reduction in the total network hash level to 499.55 TH / s. Needless to say, it’s just a drop to the level we had in April, which was even higher than it had been until now, but it still shows the impact of recent events.
There’s the possibility that this is just a pause in the processes, a hiatus from the ether, before the miners move to another part of the world and go to HAM at the hash rate and increase it even further. Equally, this could be the beginning of the end for ethereum-based GPU mining, with declining profitability and the fork approaching a participation test rather than a work test, based on graphics card processes .
GPU prices have fallen in China because of this, and we have also seen signs that the cost of graphics cards is starting a long, winding road back to normal in Germany and Russia as well.
Ethereum is not the most widely known cryptocurrency, although it is the most inextricably linked to PC gaming due to its hardware requirements. Bitcoin remains the most important and this cryptocurrency is taking the unprecedented step of facilitating mining and therefore more profitable.
According to reports, the bitcoin network recalibrates its difficulty level approximately every two weeks and, due to the repression of mining in China, the amount of time it takes to resolve a bitcoin block has been 19 minutes. This happens with a typical completion time of 10 minutes, which is considered more desirable.
The bitcoin code has now made it 28% easier to extract a block, which will theoretically return the blocking time to 10 minutes.
This will have no impact on GPU prices, as these are dedicated ASIC graphics cards, not graphics cards sent by bitcoin mines, but it is still a fascinating look at what is currently happening in the cryptocurrency market. as a whole.