Bitcoin mining ban in China inflated hashrate in Filecoin and Chia blockchains

Against the backdrop of the mining ban in China, other blockchains are showing an influx of computing power. Filecoin and Chia blockchains are among the growth leaders.

On July 2, the difficulty of the bitcoin network collapsed by almost 28%, a record decline in the lifetime of bitcoin, amid the ban on mining in China. According to Coinwarz statistics, Bitcoin hashrate stands currently at 87 EH/s. Reducing the complexity of mining made mining bitcoin easier and more profitable, but other blockchains running on other consensus algorithms other than SHA256 turned out to be more profitable than bitcoin.

Currently, the most profitable consensus algorithm is Blake256R14, which is used to mine Decred (DCR) cryptocurrency. On ASICs with a capacity of 52 TH/s and consuming 2200 watts at a cost of $0.12 per kWh, one can profit up to $116 per day when mining DCR. If you mine Ethash-based cryptocurrencies, such as ETH, ETC, CLO, PIRL, UBQ, the daily profit will be $42 per day with an energy consumption of 760 MH/s and 1350 watts of power.

But the main beneficiaries of the ban on bitcoin mining in China were the Filecoin and Chia blockchains, which, in spite of the bitcoin network, showed an increase in the hashrate and network complexity. If in October the capacity of Filecoin network storage capacity was 600 pebibytes of PiB, currently it stands at 7,087 EiB.

Chia blockchain network storage capacity has grown by 14.17% in two weeks. If on June 22 it was 26 718 PiB, then on July 5 it was already 30 505 PiB.

“The computing power of Chia and Filecoin in China has not been affected. Chinese government mainly controls the power sector to crack down on bitcoin mining, but they consume less electricity. Their computing power is continuing to rise, and some Bitcoin miners may switch to them,” Chinese IT journalist Colin Wu tweeted on June 20.


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