April 15th Price Drop, Hash Rate Drops As Blackouts Instituted In China

[mersal]

Blackout causing much severe damage to the prices and there is no sign of the clog will clear in the next few days so holders can expect further drop on bitcoin prices until things back to normal, currently, the prices went below 50K while the number of unconfirmed transactions remains in the 200K region which is the highest recorded number of unconfirmed transactions after that 2017 and early 2018.

[LUCKMCFLY]

There are many reasons why the fall of Bitcoin has occurred, some think that it is because of the blackouts in China, others believe that it is because of the fiscal measure that Biden wants to put in the US, others like Warren Buffet that do a lot of FUD to Bitcoin and Crypto claiming that cryptocurrencies are like a game, but really the hash problem I don't think is that relevant, in fact in the US it now represents 7.6% of the global hash, the other percentage corresponds to China.

According to recent data, Foundry USA has now entered the top five biggest mining pools in the world. Its daily hashrate has surpassed 10.10 exahashes per second, accounting for 7.63 percent of global computing power.

Source: https://u.today/bitcoin-hashrate-moving-to-america-as-us-mining-pool-enters-top-five

[wiss19]

Those saying that this is the right opportunity to accumulate bitcoins, how sure are you about that? What if it’s not going up again anytime soon and keeps dropping after you might have accumulated? No matter what it is going to be, we all still have to be very careful with the choices we are making at this point. If you feel you should buy now, still do so with a little amount since you’re not 100% sure whether the price will boom immediately they are done with investigating the accidents they are talking about.

[jaysabi]

"Decentralized" , yeah right. China controls so much of the mining power in the world and that results with most of the hashes coming from them and being able to do something. Sure when miners want to change something that's not enough because all the transactions should be from miners and we know that it is not, there are tons of other people. Remember back in 2017 or something miners wanted us to not have Segwit and we still went with it and they created BCH to compete with Bitcoin and they failed miserably as you can see these days. Which means miners do not have that much power.

However if they want to they could play with the price, just close all the shops in china for one week and price of bitcoin will be under 40k and they can buy with all of their profits and then start back up and increase the price and it will profit them even more, that's horrible.

China doesn't control anything. Mines being located in China doesn't mean they're controlled by China. Mines still have to compete with each other, no matter where they're located, so you're assuming that all miners located in China will think the same which itself is obviously faulty logic. All the conclusions that result from an illogical premise are therefore suspect.

[tippytoes]

Those saying that this is the right opportunity to accumulate bitcoins, how sure are you about that? What if it’s not going up again anytime soon and keeps dropping after you might have accumulated? No matter what it is going to be, we all still have to be very careful with the choices we are making at this point. If you feel you should buy now, still do so with a little amount since you’re not 100% sure whether the price will boom immediately they are done with investigating the accidents they are talking about.

It is really up to the crypto user if he will buy or not, or how strong his beliefs that btc has bright future. A lot will see this opportunity to buy more, whereas, others are having hard time to buy because of the risk of losing their hard-earned money. No one can precisely predict the future, so it is left on your instincts how you will act on this market. And every individual has their own decision on this matter.

[paxmao]

I am not convinced at all of any correlation between the price drop and the hashrate drop. Bitcoin does not have less value just for a small drop in the rate up to a certain point. A different thing would be a substantial drop, like a 35% or more which could actually mean some real trouble and not just a few blackouts Technically, anything below 50% is irrelevant really.

[crzy]

Blackout causing much severe damage to the prices and there is no sign of the clog will clear in the next few days so holders can expect further drop on bitcoin prices until things back to normal, currently, the prices went below 50K while the number of unconfirmed transactions remains in the 200K region which is the highest recorded number of unconfirmed transactions after that 2017 and early 2018.

If this is a fake news to create FUD planned by China, I guess they succeed since the market drop is very huge and many are still panicking to see their holdings dropping without even sending a warning.

The drop of hash rate might be the reason why the fee of Btc before is too expensive, and a huge traffic in the network just like what happened before, its good that now its slowly coming back.

[fiulpro]

The blackouts were necessitated because of a “comprehensive power outage safety inspection” in Xinjiang, per the Wu Talk report. Local news outlet Xinhuanet that the National Mine Safety Supervision Bureau has reported three recent coal mine accidents, including an April 10 “water penetration accident” in Xinjiang that caused 21 people to be trapped.

Significantly, the Xinjiang and Sichuan regions of China combined account for more than 50 percent of the overall Bitcoin mining hash rate, according to Primitive Crypto partner Dovey Wan. Operations based in China comprise the majority of global mining power.

This impact that this blackout may have had on Bitcoin’s price, which had recorded a 1.5% drop in value in the last 24 hours, raises questions about the level of centralization of the Bitcoin network's hashing activity.

https://www.nasdaq.com/articles/bitcoin-mining-hash-rate-drops-as-blackouts-instituted-in-china-2021-04-16

This looks like an amazing buying opportunity in my opinion.

As blackouts were planned by the administration due to recent accidents, there isn't much to worry about. After the safety inspection it is most likely that the power supply will come back as before and hash rate will raise again.

As this problem looks only temporary, hash rate and fees will come back to normal in a few days or weeks.

Everything related to China is commonly misunderstood and generates a lot of  FUD when BTC related.

BTC fundamentals look as solid as ever!

At the same time I do think we have to understand the fact that even if the supply is cut off the hash rate would recover because it's an amazing opportunity for the people and the institutions to take over the mining power and luckily people do wait for situations like these.

For example the company North data AG working in the US which is actually the biggest in the industry might see this opportunity to expand their company even more , precisely why I highlighted the name and place was because many people do think all the biggest mining operations happen in China. Well no.

Plus I do think for the time being we should be able to recover without china since they are usually always engaging in wars which might create a situation where everything would be focused on the military... Thus blackouts would be more or so common !

[jaysabi]

Second, no, China is not fabricating news to negatively influence Bitcoin's price. Every time the price falls, it's not because of a conspiracy.

The evidence says the opposite.

Many of bitcoin's largest price drops can be traced to negative news related to china.

China apologized and took a softer stance on bitcoin. They're guilty. They don't want hedge funds, banks and whales invested in bitcoin to retaliate against them for crashing the price.

What "evidence"? You've posted nothing except your own conspiracy theories with no actual facts to back them up. You're asserting that China is taking actions with an intention to manipulate the bitcoin price. What has happened in reality is that China took regulatory actions and the price dropped as a result.  Just because a price drop has been correlated with past actions by Chinese regulatory authorities doesn't mean those actions were taken with the intent of crashing the bitcoin price. Assuming that was the case, what was the reason? Did China accumulate a bunch of bitcoin after that?  That would have to be the logical conclusion to believing something so ridiculous, and the fact that it didn't happen means you must believe they just intended to crash the bitcoin price for no reason.  It makes no sense.

[roadrunnerjaiv2025]

If this is true, then it gives governments and anti-Bitcoin billionaires another idea of how they can put a leash on the crypto market. I wouldn't be surprised if some electrical companies in countries with a high concentration of bitcoin miners shut down or get bought out in a few years. But if this is fake news meant to spread fear and negatively affect the crypto market, well, someone's successfully maneuvering online media. Either way, it signals to buy, at least for those who failed to invest last year.

[Hydrogen]

Your partially right, but like the blind men with the elephant, sort of wrong.

COAL is a major problem, but the real problem is historically in CHINA from the begin the miners were near HYDRO, but in recent years everywhere here in ASIA, the rivers are running dry
In order to keep these miners running, and remember we're talking about the equivalent of entire country of power wasted like say Argentina, in terms of powering these BITMAIN miners that burn 3,000KWH each, and they can be lined up to the moon.

Something has to be done, in order to mine bitcoin do we kill everyone in CHINA with smoke from coal??

I know the BITCOIN community don't care about human life, they only care about HODL, and mis-information and lies and get rich quick.

The CCP has to make a decision, they go slow. Jack Ma owner of ANT ( all hw & mining ops ) is under house-arrest, CCP has taken over in the coming months we'll learn what they intend to do with the BITCOIN "PROBLEM".

....

Chinese companies to build 700 coal plants in and outside China

Citing data gleaned from the world’s biggest developers of coal-fired power plants, Urgewald found that of all the new coal generation expected to go online over the next decade, Chinese companies will build nearly half of it. Specifically, that means 700 new coal plants, with most to be built in China, and about a fifth outside the country, according to figures provided by Urgewald and reported by the New York Times:

https://www.mining.com/chinese-companies-build-700-coal-plants-outside-china/

The issue has always been state subsidies funding coal energy.

China could choose to subsidize more wind, solar or hydroelectric power. They chose to subsidize coal. Bitcoin is not part of the equation.

What "evidence"? You've posted nothing except your own conspiracy theories with no actual facts to back them up. You're asserting that China is taking actions with an intention to manipulate the bitcoin price. What has happened in reality is that China took regulatory actions and the price dropped as a result.  Just because a price drop has been correlated with past actions by Chinese regulatory authorities doesn't mean those actions were taken with the intent of crashing the bitcoin price. Assuming that was the case, what was the reason? Did China accumulate a bunch of bitcoin after that?  That would have to be the logical conclusion to believing something so ridiculous, and the fact that it didn't happen means you must believe they just intended to crash the bitcoin price for no reason.  It makes no sense.

Define a motive behind the media reporting a long list of patently false content which negatively influenced bitcoin's value, over the last 10 years.

Define a motive behind false reports of binance offices in shanghai being raided, false reports of tether being "market manipulation" to "artificially prop up the price of bitcoin" in 2017.

Define a motive behind the public being bombarded with false stories about quantum supremacy being achieved. Another inaccurate media report trend which crashed the market value of crypto on more than one occasion.

Give me a better explanation for these aspects of history.

China reserved virtually all of its crypto related bans for occasions when bitcoin's price peaked at an all time high. They timed their bans with BTC ATHs. Or for cases where bitcoin's price began to breakout of sideways trading. If that doesn't illustrate a motive, what does.