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The decline in hash rate of Bitcoin

By BFTLR Team

Bitcoin strained on Tuesday to climb away from a two-week low touched a day earlier when China’s central bank reaffirmed a crackdown on cryptocurrencies & restricted trading channels for Chinese residents. On Monday, the largest one-day drop was observed at over 10%. The sell-off was sparked by the People’s Bank Of China (PBOC) urging China’s largest banks & payment firms to crack down on cryptocurrency trading. A rule change in 2017 erased crypto exchanges from the market but over-the-counter platforms based overseas are receiving payment from people based in China & buying cryptocurrencies on their behalf. After Monday’s PBOC statement, banks including the Agricultural Bank of China & Ant Group’s payment platform Alipay are monitoring to root out crypto transactions. Three industry associations issued a ban on crypto-related transactions although it would be hard to enforce as banks & payment firms struggle to identify crypto-related transactions. Bitcoin is running a campaign against cryptocurrencies recently with China’s state council or cabinet that would tighten restrictions on bitcoin mining. This has led to a decline in the hash rate that measures the processing power of the bitcoin network showed its lowest rate on Monday.

Source: Reuters

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