Poolin Bitcoin Mining Hash Rate Cut – Bitcoin Magazine
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A few days ago, one of the largest Bitcoin mining pools, Poolin, suspended withdrawals from their wallet service, PoolinWallet, in an effort to stabilize assets and preserve liquidity. This is significant because 1) Poolin is a China-based mining pool service, operating in China after the mining ban, and 2) the pool was estimated to have about 10% hashrate before withdrawals were suspended.
Fortunately, there is an easy answer for Bitcoin miners concerned about PoolinWallet withdrawals and usage of their mining pool service: switch to another mining pool, a process that takes seconds (as just one example, miners can immediately switch to Slush Pool and set up automatic outlet ). Switching to another pool will not unlock withdrawals from Poolin, but it does give the hash rate market a mechanism to vote with their ASICs in real-time and select a more competitive global pool.
So far, that’s exactly what we’ve seen in the past few days. A three-month pool distribution shows that Poolin has had a 10.5% hash rate. The latest three-day view shows that the share of hash rate has fallen by more than half, to 4.83%. A three-day view doesn’t always capture the data with perfect accuracy, but the estimates show a clear trend: the hash rate leaves Poolin at a good clip.
Estimates show that the hashrate is leaving Poolin at a good clip.
Using Glassnode data, we can take the share of Poolin’s Bitcoin block rewards in relation to the total market and estimate their share of hash rate on a daily basis, which is a similar method to the above data. Although volatile, we can see Wednesday’s daily hash rate share drop to 5.48%, which is the lowest value since the bad period in China in 2021.
Poolin’s estimated daily hashrate share fell to the lowest value since the bad period with China in 2021.
Total hashrate, using the seven-day moving average, hasn’t moved much at all in the past few days, so one guess is that the hashrate that left Poolin found a new home fairly quickly and stayed online.
Total hash rate, using the seven-day moving average, hasn’t moved much at all over the past few days.
An interesting note is that Poolin announced its partnership with Three Arrows Capital back in June 2020.
Three Arrows Capital & Poolin Wallet strategic partnership
While the cause of Poolin’s “liquidity issues” is not exactly known, if the two firms were still financially intertwined during the fall of Three Arrows Capital amid the crypto industry contagion, that event could certainly have played a factor.
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