The Bitcoin network was a huge success on all fronts, following China’s ongoing cuts by BTC Peers

While China’s currency has steadily declined, several key statistics have fallen to previous lows.

Total Hash Rate, Miner Revenue and Network Difficulties Declined On July 17, the total hash rate of the Bitcoin network fell to 101.58M terahashe seconds (TH / s). The last time this number was the lowest was in June 2020. Meanwhile, two weeks earlier, the full hash rate of the network had dropped to 2019 levels, according to data from Blockchain.com.

The total hash rate calculated in Bitcoin has also seen mining revenues fall to 2020 levels. The miners reportedly earned $ 28.58 million on July 17, down nearly 70% from $ 20.11 on April 15, 20.21. Although it appears that mining revenues have crashed, it is now relatively easy to extract Bitcoin.

The difficulties with the Bitcoin network, which is how difficult it is to get a new block out of the Bitcoin blockchain, have been declining since late May.

In some contexts, high network difficulties would require higher computing power to extract the same number of blocks. On the other hand, the low difficulty of the network suggests that miners would be able to find new blocks faster. The difficulty level of the network is adjusted for all blocks in 2016 (approximately every two weeks) to ensure that the average time for each block is 10 minutes.

The adjustment of Bitcoin difficulties is directly related to the estimated total mining power, i.e. the total hash rate. As a result, as the network’s hash rate has continued to fall in recent weeks, Bitcoin’s mining difficulties have also continued.

BTC PEERS reported that the China Financial Stability and Development Commission (FSDC) has announced plans to reduce Bitcoin mining and trading activities in the country. The news created a great deal of uncertainty among cryptoinvestors, especially Chinese miners. Amid the cloud of uncertainty created by the ad, the price of Bitcoin reached almost $ 30,000.

Since the news broke in late May, China has moved to close several crypto mining operations. It is estimated that about 90% of Chinese miners have been offline. Meanwhile, some major mining companies have closed their stores and are located in more crypto-friendly regions. However, the impact of China’s recent stance against cryptography is still very much in force and may last a little longer.

Bitcoin Transactions Are Cheaper One of the good things about the downturn in the market is that sending Bitcoin is now relatively cheaper. In April, the average transaction fee for the Bitcoin network peaked at nearly $ 60. However, as of July 16, that value had dropped to $ 2.45.

In peak demand seasons, the Bitcoin network typically piles up with thousands of unconfirmed transactions. Transaction fees also increase after network pressure increases. With Bitcoin trading at around $ 30,000, the demand for major cryptocurrencies seems to have calmed down. The digital asset is also expected to fall to $ 10,000.

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