Commissions in the Bitcoin network rise to a two-year high, and miners are switched off in China
China shuts down miners due to electricity issues
The authorities in the Chinese province of Sichuan are beginning to forcibly shut down mining farms.
The reason is the lack of hydroelectricity. The rainy season this year is delayed, and this has caused the water level in the rivers to fall by 20%, while consumption has grown by 22% since the beginning of the month.
“Some mines have got power cut for over three days, and some are only allowed to mine during the night. Areas close to Sichuan’s capital city Chengdu like Wenchuan are suffering from severe power outages, while remote places like Ya’an and Kangding, with small electricity demand and sufficient rainfall, see few power failures.”, an employee of one of the farms said.
It is estimated that about 10% of the computing power of bitcoin miners is concentrated in Sichuan, and the suspension of mining in this region can seriously affect the hashrate of the first cryptocurrency. After halving, this indicator has already fallen by 30% from 122 TX/s to 93 TX/s.
Bitcoin transfer fees have risen to a two-year high
The bitcoin network still cannot return to normal after halving. On May 20, the average transaction fee level rose to $6.633, the highest level since June 2018. A month ago, before halving, the figure was 10 times lower.
The size of the mempool — the volume of unconfirmed transactions — increased to the values of the winter of 2018. On May 21, it was 94.41 Mb. Against this background, the cost of BTC dropped from $9,600 to $8,800. Now the average market price of bitcoin is $9,167, in 24 hrs the cryptocurrency has lost 2.10% in price.
On May 11, the block reward was halved in the Bitcoin network from 12.5 BTC to 6.25 BTC.
China proposes the launch of Asian stablecoin
Members of the People’s Political Advisory Council of China have proposed releasing a regional stablecoin tied to four currencies: the Chinese yuan, the Japanese yen, the Korean won and the Hong Kong dollar.
According to officials, the digital currency will simplify the exchange of goods between countries, reduce costs and commissions, and accelerate the processing of operations. Thanks to trade stimulation, stablecoin can be “the key to economic recovery in the region after the coronavirus pandemic.”
The digital currency will be controlled by the People’s Bank of China, and it is planned to assign weight to the currency basket of each country depending on the size of its economy.
10 years ago, two pizzas were bought for 10,000 BTC
On May 22, the Bitcoin community celebrates Happy Bitcoin Pizza Day. Exactly 10 years ago, American programmer Laszlo Heinitz purchased two Papa John’s pizzas for 10,000 BTC (about $25). This was one of the first cryptocurrency purchases in the world.
At the current price of bitcoin, pizzas would cost Heinitz $91.74 million — for this amount today he could order about 3.6 million pizzas.