Just a week back, it was reported by the on-chain crypto-data analyzing firms that a drop was observed in Bitcoin (BTC) hash rate. Later on, it was speculated that the drop in the Bitcoin (BTC) hash rate would be the result of an explosion that took place in China’s coal mine.
The sources reveal that the particular coal mine in China is located in the country’s autonomous region known as Xinjiang. It is now being implied that the particular coalmine explosion would be the reason that a drop in the Bitcoin (BTC) hash rate has been reported.
The news of the drop in Bitcoin (BTC) hash rate has come at a very critical/sensitive time. This report will continue to cause a problem in the all-time high rate of Bitcoin (BTC) in the market.
The news surrounding the explosion in a Chinese coal mine was first reported by Dovey Wan, who is the co-founder of Primitive Ventures. Although the reports were covered by the local media sources around the explosion, Wan first shared the speculation around Bitcoin (BTC) hash rate drop.
According to Wan, as the coalmine in Xinjiang ended up in an explosion, the entire region ended up facing a power outage. The power outage faced in the Xinjiang region belonged to the major priority class. The power outage resulted in the Bitcoin (BTC) mining farms and data centers shutting down for an indefinite amount of time.
As a vast number of computing power was lost during the process, therefore, Bitcoin (BTC) ended up facing a drop in the hash rate production.
As per the reports, the explosion in the Chinese coal mine took place on Sunday, April 11, 2021. Because of the explosion, a major part of the coalmine ended up getting flooded with water. This incident left 21 miners being stuck in the coal mine and the rescue mission is still ongoing at the time of writing.
Due to the flooded coal mine, there is a power outage, which has led to a significant drop in the Bitcoin (BTC) hash rate.
The rescue missions to save the stuck miners are still ongoing and it is being hoped that the miners will be rescued soon. Once that happens, the next step would be to take the water out of the mine and bring the power back to normal. This would eventually bring the Bitcoin (BTC) hash rate back to normal.
Due to the power outage in Xinjiang, many data and crypto mining centers are currently shut down. This is the reason why the current Bitcoin (BTC) hash rate is at a low figure of 169 EH/s. Prior to the explosion and power outage in Xinjiang, the Bitcoin (BTC) hashrate being generated was 208.5 EH/s.