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- Since the bitcoin’s market peak in May, the hashrate has gone down by 54%.
- According to BTC.com, this is the third straight drop in BTC’s difficulty. The mining difficulty on May 29 and June 13 fell down by 16% and 5% respectively.
- Mining will be much easier and more profitable. According to bitcoin mining engineer Brandon Arvanaghi, this will be a revenue party for the miners.
Bitcoin’s mining difficulty has plummeted by more than 28% signifying one of the biggest dips in the token’s mining difficulty. According to BTC.com, this is the third straight drop in BTC’s difficulty. The mining difficulty on May 29 and June 13 fell down by 16% and 5% respectively. The drop in BTC’s mining difficulty is mainly attributed to the Bitcoin blockchain‘s automatic stabilizing mechanism which operated due to China’s strict crackdown on mining activities. China contributes two-third of the total mining activities across the world. During May, the Chinese regulators had mandated the miners in the Sichuan and other mining hubs to shutdown their operations.
Mining Will be Much More Easier and Profitable
Hashrate is a measure of total computing power of miners from all over the world. Due to China’s rescaling measures on mining operations, the hashrate drastically declined from 140 exahashes per second (EH/s) to a 14-month low of 94 EH/s. And since the bitcoin’s market peak in May, the hashrate has gone down by 54%. However, thanks to bitcoin’s adjustment algorithm, it kicked in right at time to make sure that the miner productivity doesn’t slack off. This also implies that mining will be much easier and more profitable. According to bitcoin mining engineer Brandon Arvanaghi, this will be a revenue party for the miners.
Bitcoin Reprograms at Every Block Height of 2016 to Adjust Difficulty
Darin Feinstein, founder of Blockcap and Core Scientific said that for the first time ever, bitcoin network’s history has experienced a complete shutdown of mining in a targeted geographic region that constituted more than 50% of the network. Less miners indicate that the numbers of blocks mined will reduce significantly. Generally, 10 minutes is required to solve each block but since the number of miners have decreased, now a single block takes 14-19 minutes to be mined. Bitcoin adjusts its difficulty at every block height of 2016 or to be precise every two weeks. This is because the bitcoin algorithm is designed to regulate itself with the increase or decrease in the mining capacity.
Whit Gibbs, CEO and founder of Compass said that they are expecting much greater profitability for their clients. Gibbs expects an increase of 35% in their profitability. Compass is a renowned bitcoin mining service provider. However, this is expected to be temporary as more and more miners are shifting to the US and Kazakhstan to restart their mining operations. But Gibbs expects this to continue for at least the next six months. This could also benefit the US mining sector as more and more homeless Bitmain miners are resorting to major U.S. mining operators.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
