The Chinese government’s crackdown on crypto-related activities, including trading and mining, is taking a huge toll on the Bitcoin network.
According to on-chain data published today by Glassnode today, the large exodus of miners from the world’s most populous nation has resulted in a decrease in Bitcoin hash rates and activity on the network.
Glassnode data suggests that it took 23.3 minutes to mine a single block on the Bitcoin network throughout yesterday. A backdrop of such magnitude was last seen during the early days of Bitcoin.
Based on the massive decline in Bitcoin network activity that has resulted in mining difficulties, the report noted that only 58 Bitcoins were successfully mined throughout yesterday. The recent data represents a 60% drop from the minimum of 144 BTC that are usually minted daily at an average of 10 minutes per block.
Miners’ Revenue Suffer Losses
Notably, the Bitcoin hash rate is not the only aspect of the network that is suffering from the sanctions, as Glassnode indicates that global miners’ revenue was also badly hit.
As of yesterday, miners’ revenue plummeted from $70 million recorded last month to only $12 million, which represents an 80% drop in the last 30 days.
China’s Hostility toward Cryptocurrencies
It is no longer news that China has been cracking down on Bitcoin-related activities, especially mining in the country. Prior to the announcement, China used to be considered a safe haven for Bitcoin miners, with more than half of the world’s BTC miners located in the country.
However, due to the regulatory scrutiny, miners in the country are dumping their equipment in the market in order to be able to finance their move to a more friendly nation.
This massive dump has resulted in top-tier mining equipment crashing by more than 75%. Coinfomania reported last week that the world’s largest Bitcoin mining maker Bitmain had announced that it would halt sales of its equipment to help boost back the price of the machines and also assist miners to relocate to other BTC-friendly countries.
According to reports, miners are now relocating to North America, Kazakhstan, and Russia, with these regions still favorable to Bitcoin mining operations due to cheap electricity costs.