After banning cryptocurrencies nationwide, Chinese authorities through the People’s Bank of China reiterated the message to the giants of the Chinese financial system in a meeting. A PBC executive made it known that banks and other financial institutions should not allow the opening of accounts or registration for cryptocurrency-related activities .
The Agricultural Bank of China was the first to follow the guidance of Chinese financial authorities. The country’s third largest bank said it would immediately close all accounts of customers involved in cryptocurrency trading activities.
This decision was going to have heavy consequences on the price of Bitcoin and other cryptocurrencies that were already in a bearish stalemate. At the time of writing this article, the cryptocurrency market is down 6.32%. Bitcoin is buying at $32,685, down 19.63% in 7 days. Ethereum’s price is at $1980 representing a 22.86% drop. Dogecoin, XRP, Cardano (ADA) are down 32.39%, 24.47% and 18.17% respectively.
First of all, Hashrate is a piece of mining jargon that is used to measure the mining power of one or more machines. In other words, it is the speed through which the machine solves computational operations. CoinTelegraph reported that the Bitcoin Hashrate network results plunged by 46%. Bitinfocharts also reported that the Bitcoin Hashrate dropped from 171.4 Exahashes per second to 91.2 EH/S after 6 weeks.
According to the same Bitinfocharts report, the profitability of mining has also decreased. It dropped by 98.67%. Going from $0, 449 per terahach to $0.226. The firm hand of the Chinese authorities against all cryptocurrency activities, mainly Bitcoin mining, is the cause of these poor results.
Miners have already found a new destination: Texas. They would have flashed for the American state for its flexibilities in terms of regulation and the rather affordable cost of renewable energy.
During the Bitcoin summit held in Miami, the mayor of the city invited miners, chased away in China, to come and settle in his city to continue with the mining activity. El Salvador has also been very supportive of Bitcoin mining.