Ethereum's Hash Rate to Take a Hit with SparkPool Shut Down
It is chaotic being a crypto operator in China right now.
In an effort to go green, China is clamping down on all cryptocurrency activities, including trading and mining. For years, China has been attractive to miners because of its proximity to chipset manufacturers and availability of cheap power.
However, things have been taking a turn for the worst in the last few months as authorities declared crypto mining—and any activity related to digital assets—illegal. Because of the concerted efforts by officials in China, SparkPool, the second largest mining pool in Ethereum, will be winding down operations.
To remain profitable and increase the odds of confirming a block for ETH rewards, Ethereum miners join hands, channeling mining power through pools. Pools often charge a fee for their provision, while ETH earned is distributed to individual miners.
SparkPool will shut down activities from Thursday—September 30--after announcing it was blocking access from citizens from mainland China. In response, SparkPool's share of Ethereum hash rate has shrunk to 20 percent, down from 23 percent. Ethermine is still the largest Ethereum mining pool.
At present, it isn't clear whether SparkPool will shift base to other countries and resume operations.
Ethereum plans to shift from a mining network to a staking platform after migrating to Eth2 in the next few months.
CryptoAltum traders can exchange ETH with other coins, including BTC and USDT, using high leverage via the easy-to-use MT5 platform.
For more interesting tips and facts visit our Education Centre.
We're available 24/7 to help you. You can email us, or send us a message on WhatsApp, Telegram or Messenger!
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
CryptoAltum does not accept any clients under the age of 18.