Eric Meltzer (a partner at INBlockchain) reported that rumors suggest a bitcoin mining facility in China was destroyed by a massive flood that affected the entire province of Sichuan, China.
Mining Centers are badly affected by Heavy Rain and flood in China over the past few days.
Did it Have an Impact on Bitcoin Hashrate?
As a result of this the hashrate of bitcoin temporarily dropped from 43 million TH/s to 30 million TH/s,more than 30 percent overnight. While volatility in the hashrate chart of bitcoin is expected, the sudden drop in bitcoin hashrate was sufficient to alert investors and analysts.Over the past 24 hours, the hashrate has rebounded to 40 million TH/s after its initial 30 percent drop, and analysts have attributed to the decline in the hashrate of the Bitcoin network to the Sichuan flood incident.
Finally till now, the rumors about the situation in Sichuan and the destruction of large-scale mining centers by strong floods and heavy rain are yet to be confirmed by local authorities. But, local analysts have emphasized that even if the flood wiped out a major mining facility in China, it should not be enough to trigger the hashrate of bitcoin to fall by 30 percent in a short period of time.
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