Bitcoin Hash, Mining Problems Have These Updates for You

Bitcoin [BTC]The biggest cryptocurrency battle continues to see new days and nights in the cryptocurrency market. While investors feared losing their savings due to a price correction, bitcoin miners may have taken a different approach this fall.

Difficulties

Bitcoin recorded its worst August performance since 2015 after the monthly candle closed 14% lower. In fact, at the time of writing, BTC has fallen below the $2ok mark as it is trading around $19.9K. Here’s a seven-day chart in red for the biggest token.

Source: CoinMarketCap

After the free fall, many analysts put forward bearish trends to warn Bitcoin enthusiasts. For example, Crypto Tony warned that the (Bitcoin) stage is set for deeper losses ahead. In a tweet sent by the famous merchant on September 1 addedAnd the

Needless to say, the mentioned drop included significant liquidations with the bitcoin spot market. This means that dealers are starting to sell their property. But not everyone took the same approach.

The road is less crowded

Surprisingly, miners haven’t given up on bitcoins yet as the mining difficulty has reached its peak. BTC began adjusting mining difficulty at block height of 751,968, and mining difficulty significantly increased by 9.26% to reach 30.98T.

Source: BTC.com

According to data from on-chain monitoring resource BTC.com, this will be the highest bullish difficulty adjustment since January of this year.

Moreover, this number represents an increase of 9.26% since August 18, when the mining difficulty was 28.35 trillion.

Well, mining difficulty determines how difficult it is for a miner to verify transactions, assemble them into a block, and add them to the blockchain.

If there are few miners, the difficulty will decrease, while when the number of miners increases, the mining difficulty will increase. Ergo, increase means big demand.

At the same time, the amount of computing power required during the mining (hashing) process also increased, jumping from 202.76 EH/s to 224.25 EH/s (EH/s = exahash per second) during the same period.

What does this mean?

Well, both the difficulty and the increase in the hash rate reflect the belief among miners in the long-term viability of their participation in the network. This belief comes at a time when mining does not reap the same benefits (profitability).

According to BitInfoCharts, mining profitability has been steadily declining since August 18, when it was at $0.109 per thash/sec (based on a seven-day moving average).

Source: BitInfocharts

At the time of writing, profitability has fallen to just $0.082 per THash/s. In fact, there is a worrying sign associated with the Bitcoin price drop. In fact, the price is down 17% in a month and 60% in a year.

Now the question remains: can miners bear such losses and continue their mining operations (operations)? Let’s wait and see.

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