• Poolin’s Bitcoin mining hash rate share has dropped from an all-time high of 18% to only 1%.
• The decline can be linked to the mining pool’s announcement of liquidity problems in September.
• Poolin had the largest miner outflow in two years, amounting to 10,000 Bitcoins.
China-based Bitcoin mining pool, Poolin, has recently suffered a record decline in its hash rate share, dropping from an all-time high of 18% to only 1%. This drastic decrease can be attributed to the announcement made by the mining pool last September, in which they revealed their liquidity problems. This announcement caused many miners to leave the pool, resulting in a decrease in hashing power and block rewards.
The liquidity issues experienced by Poolin were further revealed when the Bitcoin held in their wallets dropped sharply from 22,000 BTC in early November to 6000 BTC in December. This decrease accounted for a substantial portion of the overall decline in balances held by miners. The outflow of miners from Poolin also amounted to 10,000 Bitcoins, the largest miner outflow experienced in two years.
The situation was further exacerbated by the increasing mining difficulty, declining Bitcoin prices, and miners closing their businesses due to declining profitability. All of these factors led to the 94% reduction in Poolin’s hash rate share, a record low for the mining pool.
However, Poolin is attempting to turn their fortunes around by making strategic investments in new technologies and miner hardware, in order to increase their hash rate share and profitability. With their liquidity issues now under control, Poolin is taking steps to ensure their future success as a major player in the Bitcoin mining industry.