In recent weeks, Bitcoin's hashrate has seen its sharpest decline in three years, raising questions about the possible reasons behind this phenomenon.
Sharp Decline in Bitcoin's Hashrate
According to Blockchain.com data, Bitcoin's hashrate dropped from nearly 943.6 billion terahashes per second (TH/s) on June 15 to 799.9 TH/s on June 24, representing a decline of over 15% and reaching levels not seen since May.
Presumed Connection to Iran
There have been discussions in the cryptocurrency community suggesting that the fall in hashrate could be linked to events in Iran. The country is known for large-scale Bitcoin mining operations, with some reportedly supported or protected by state actors, such as the Islamic Revolutionary Guard Corps, contributing to local power outages.
Weakness of Connection and Other Factors
However, the connection between the hashrate drop and the events in Iran is weak. Over 3% of the total hashrate decrease coincided with specific events in Iran, but declines were already observed prior to these occurrences. Other factors, including rising electricity prices and heatwaves in the US, might also influence mining profitability.
The decline in Bitcoin's hashrate is seen as a combination of various factors, including geopolitical and economic conditions. Discussions about the roles of different countries in this process continue.
