China has blocked Bitcoin again?!
Recently, in the Xinjiang region of China, there has been another wave of cleanup against Bitcoin mining. It has been reported that about 1.3GW of mining power has been forced offline. This is equivalent to 100 EH/S of computing power disappearing overnight. These computing powers account for about 10% of the total Bitcoin network power.
It sounds scary, so what will happen?
1. The Bitcoin network will slow down. Due to the decrease in computing power, the entire main network will slow down when processing tasks.
2. The difficulty of mining will automatically adjust. The Bitcoin network will automatically balance this change, and the mining difficulty will decrease, which means that the mining machines still online will find blocks more easily.
If we look back to 2021, a similar event also occurred in China. At that time, China first blocked mining machines, and the global computing power went offline by 50% overnight. However, soon after, these mining farms concentrated in Inner Mongolia, Sichuan, and Xinjiang migrated to Russia, Canada, the United States, and so on. Months later, the computing power reached a new high again.
The only change is the permanent alteration of the computing power structure, from China controlling the vast majority of global computing power to completely losing this leading advantage. The decentralization of computing power also makes the entire main network more secure and stable — after all, no matter which country prohibits it, there will always be miners from other countries who will quickly fill this gap.
This structural adjustment will support Bitcoin prices towards a higher and more stable future!