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As miners struggle with declining prices everywhere, the hash rate of Bitcoin mining dropped by almost 26% in the previous 30 days.
On June 8, the hash rate for Bitcoin reached a peak of 292.02 EH/s, according on information from Coinwarz. On July 9, it reached a low of 178.44 EH/s before rising to its present level of 241.07 EH/s.
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Reason for low hash-rate
The amount of processing power needed to mine and process transactions on the Bitcoin network is known as hashrate. The mining hash rate often increases as more machines are contributing to the maintenance of the network’s security.
Bitcoin has mainly traded in the $20,000 zone during the past 30 days, but on June 18 it temporarily fell to a one-and-a-half-year low below $18,000.
Despite BTC values fluctuating around $20,000, miners made progress with the most recent difficulty change.
The difficulty is anticipated to change once again shortly, however, the last update made finding new BTC blocks easier by 3.76 percent. The DAA may drop another 0.13 percent after 1,600 blocks.
Due to the historic market slump, mining revenue has significantly decreased. Blockchain.com data shows that over the past nine months, Bitcoin mining revenue has decreased by almost 79 percent, reaching a low of $15 million on July 4.
Due to the declining income, miners like Compass Mining have had to downsize their workforce by 15% while simultaneously reducing the compensation of its senior executives.
Due to the escalating cost of operations, several companies including Marathon Digital, Riot Blockchain, and others were forced to liquidate their Bitcoin holdings.
The continuing selling by these miners might put pressure on the price of Bitcoin in the third quarter, according to a recent JPMorgan research.
Graphic cards and GPU costs have been declining together with the price of bitcoin. According to data that is currently accessible, GPU prices dropped by 15% in May.
Small-time miners now have the possibility to buy more mining equipment thanks to the declining price, and when combined with the declining hash rate, they have a chance to mine Bitcoin.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
