Bitcoin is badly hurt after domestic crackdown: transaction volume plummets and network computing power is halved

In recent times, virtual currency mining has been severely cracked down in China, and at the entire chain level, including but not limited to energy transmission sections, mining farms and mining pools, and capital transfer channels.

Since then, Bitcoin’s market has been somewhat bleak, and at press time it was still hovering around $32,000.

Since my country was previously the main base for Bitcoin mining, this wave of clearance and power outages caused a sharp drop in the computing power of the entire network. On May 13 this year, it was as high as 180EH/s, but was halved to only 96EH/s before writing.

In other words, the computing power that Bitcoin took more than ten years to reach was lost in just one month.

Dave Perrill, CEO of Compute North, recently said that it is expected that the total computing power of Bitcoin will take at least a year to recover, which means that it will not be restored until the second or third quarter of next year at the earliest. Compute North is a company that sells mining equipment and hopes to reach an installed capacity of 12 billion watts next year.

Some analysts also mentioned that some Chinese mining farms are moving to overseas areas, and the slow recovery of Bitcoin's computing power seems to be a signal.

Other data shows that in June, the trading volume of several major exchanges such as Coinbase, Kraken, Binance and Bitstamp plummeted by 40%, and the price of Bitcoin once fell to $28,900. The highest daily trading volume occurred on June 22, with a scale of $138.2 billion, a month-on-month decline of 42.3%.