Bitcoin mining difficulty has risen for the second time since the slump in mid-July. The reason: the continuously recovering ecosystem.
The Bitcoin mining ecosystem is witnessing an increase in mining difficulty after China announced crackdown on mining operations. Latest data from BTC.com shows a Bitcoin mining difficulty dating back to June 17, 2021.
Since mid-June, the Bitcoin mining ecosystem has recorded a 13.77% increase in difficulty in two consecutive leaps – to over 15 terahashes (TH). This is due to the fact that bitcoin miners from China are now settling in various crypto-friendly countries.
The next adjustment is expected to be on August 27th and the mining difficulty will rise to around 15.63 TH.
Bitcoin’s mining difficulty peaked at 25TH before crackdown on local mining activities in China. The unexpected decline in the number of miners in China has reduced the difficulty of validating blocks. This has enabled the existing miners on the Bitcoin network to make more money.
Reason for Bitcoin Mining Difficulties in China
According to Statista, China’s exposure to Bitcoin (BTC) mining has dropped to 46%, unlike the United States. However, the country is home to nearly 17% of the world’s mining hash rate. That suggests it is recovering from the doldrums.
In a CNBC report, crypto analyst Jason Deane explains: The adjustment mechanism of the latest bitcoin difficulty affects mining profit.
According to Deane, a quantum economist, this mechanism reduces mining profits by 7.3%. CNBC is an American news channel headquartered in Englewood Cliffs, New Jersey. The network is primarily geared towards reporting on the US and international financial markets.
At the end of the discussion, Mike Colyer explains:
“Different types of machines come from China and they need a new home.”
Mike Colyer is the CEO of Foundry, a digital currency group based in New York. Colyer has concluded that the modern generation of Bitcoin mining rigs will be more efficient. With an equivalent amount of electricity, it delivers twice the output.
In addition, China’s rebellion against Bitcoin mining is based on energy concerns due to the electricity used by the mining operation.
After the crackdown, Kazakhstan, Russia, Canada and the USA became the best alternatives for Bitcoin miners.
Proof of text: Bitcoinist
Last updated on August 16, 2021
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