Suspension of BitFuFu mining due to new restrictions by the Chinese authorities.
Updated: Jul 2
Yesterday, June 9, at about 2 pm (+3 UTC), mining on the BitFuFu service was stopped. All user contracts, including 100% of my contracts (1230 TH/s) went offline.
At the time of 3 pm, messages from users began to appear in the official telegram chat that they were finding their contracts disabled. Also, offers for the sale of new contracts were removed from the Cloud Mining page.
Why did this happen?
It is all the fault of the policy of the Chinese authorities regarding the consumption of electricity by mining farms. China wants to free itself from carbon-based electricity consumption by 2040, and mining farms in Northwest China use this type of electricity. All this led to a number of new restrictions.
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The first such situation happened on April 21, when there was a massive shutdown of mining farms in Northwestern China. Then, on April 21, the mining contracts were suspended on BitFuFu.
A week later, on April 28, the mining contracts were restored.
What happens to contracts during a disconnection?
With such outages for miners, BitFuFu applies contract prolongation from a 1:1 ratio. You may notice that in the data of your contacts, the Mining Operation Duration line does not change.
Thus, you will not lose a single hour from the work of your contracts, just these hours will be added to the end. For example, if, with the uninterrupted operation of the contract, it would end on July 1 at 12 noon, with compensation at 24 hours, it will finish its mining on July 2 at 12 noon.
What was said by the BitFuFu Administrators?
And here I have questions and irritation. The fact is that in the official English BitFuFu group, not a word was said that mining would be turned off. In addition, the main site also does not have an official statement on this topic.
Users were able to get an answer about what was happening only when they found the BitFuFu VIP group that speaks Chinese. In this group, Rock (admin Bitfufu) explained in Chinese what was going on.
Why a statement was not made in the main English-language channel and on the official website of BitFuFu remains a mystery to me. It is very disappointing that the situation was described to the Chinese users in the VIP channel, and the administrators decided not to say anything to ordinary non-VIP users, such as you and me, and to spread panic.
The official message was translated into English at 1:30 am on June 10th and posted on the BitFuFu English group.
Despite this, BitFuFu administrators say that the service will begin to restore mining in the near future.
Thus, it is not clear when contract mining will resume. Maybe it will take 1-2 days, and maybe up to two weeks.
What will happen to mining on BitFuFu next?
And here it is already very interesting. The fact is that a similar situation with a massive outage of miners in northwestern China on April 21, caused large fluctuations in the Difficulty of the Bitcoin Network. This made it possible at the end of May to make a number of very profitable purchases of contracts and reinvestment of the accumulated BTC.
At the moment, the overall hash rate of the network has dropped very much to the level of 108 EH/s. This means that at the moment the pool will be clogged with user transactions and, in addition, the next Network Difficulty will be lower. I believe that the difficulty of the network will continue to be reduced in the next period as well, but then it will grow when the miners start working.
Such fluctuations already led to the fact that I was choosing the right moment to buy contracts with a profit of 30% in 2 months. I think that next month we will have about the same situation.
In order not to miss the best moments for a purchase, follow my analysis, which I publish daily in my telegram channel: BitFuFu Daily Analysis and Buy Signals
Thanks for reading this article. I will be pleased if you share it with people who do not understand what is happening.
As a result, I can say that everything will depend on how quickly mining on BitFuFu resumes and what fluctuations in the network Difficulties await us in the future.
These fluctuations provide opportunities for profitable investments and decisions.
I wish all of us a speedy recovery of mining contracts!