Drop In BTC Hashrate Caused Miners To Earn $16M In One Day

A drop in BTC hashrate caused miners to earn about $16 million in the past 24 hours while a few days ago we witnessed a widespread power outage in North China which led to sharp drops in the BTC hash rate so let’s read more in our latest Bitcoin news today.

Because the major mining farms are located in China, there was about a 20% corresponding drop in the hash rate. As a result of the decline of the hash rate, the backlog in transaction processing surged and caused a mounting transaction fee. With the drop in BTC hashrate, the bitcoin miners earned $16.7 million in one day. Wu Blockchain noted in a tweet:

 “Bitcoin miners’ fees have increased significantly. The fees paid to Bitcoin miners in a single day amounts to $16.76303mln. The core reason is that the power outage and inspection in Northwest China has reduced the 20% hashrate, resulting in a backlog of transactions.”

It seems that as a result of the backlog, some users increased their miners’ fees to speed up their transactions, as Wu explained:

 “There are many unpackaged transactions in a short period of time, causing transactions to be queued, and the number of transactions that the network can process within a certain period of time is limited. Users who are anxious to transfer will increase the miner fee.”

The limited number of transactions that can be processed and verified at the same time means that many transactions were held up by the blockchain and were pending for more than 9 hours. Many analysts attributed the recent price correction to the mining outage in China which led to another concern about the impact of power outages on BTC. The controversies started when many claimed that the BTC network hashrate dropped by 40% but others pointed out the fact that the Chinese Outage happened a week ago and the mining hash rate drop was not more than 20%.

Since the power outage, the topic of mining power deficiency continued to be a heated discussion but BTC did retrace from a new ATH of $64,683 to fall around $54,000 as the exchange supply of the coin is seeing a decline. The BTC price is now consolidating above $55,000 with the support staying strong at $54K. The 10% drop was nothing out of the ordinary with the number one cryptocurrency saw a 25% drop in the latest bull run.