The difficulty peaked beyond 31T in mid-May and is currently just around 27.69T.Recently, the hash rate has also declined. According to BitInfoCharts, it peaked on June 8 at more over 250 Ehash/s, but since then, it has dropped by almost 25% and is now only at 190 Ehash/s.
Bitcoin mining difficulty goes down by 5% and this is a pressing issue!
The indicator has shown the longest negative trend in roughly a year, but this was to be expected.
With a decline of more than 5%, the Bitcoin mining difficulty just had its worst negative readjustment in over a year. The hash rate has also dropped recently, which is fairly expected given that many miners have been having difficulties.
The mining difficulty changes approximately every two weeks (after 2,016 blocks), and it either makes mining more difficult or less difficult. Essentially, it readjusts based on the number of miners who currently have their machines plugged in and observes the behavior of miners and the most recent changes in hash rate.
As a general rule, more miners make it more difficult for the difficulty adjustment to ensure that the block output stays roughly constant, and vice versa.
According to data from BTC.com, the most recent change, which took place hours ago, lessened the difficulty by 5.01 percent. Since July 3 of last year, this is the largest single negative readjustment. Furthermore, it is the longest such run in a little more than a year because it is the third straight negative one.
The difficulty peaked beyond 31T in mid-May and is currently just around 27.69T.
Recently, the hash rate has also declined. According to BitInfoCharts, it peaked on June 8 at more over 250 Ehash/s, but since then, it has dropped by almost 25% and is now only at 190 Ehash/s.
Over the past month or so, Bitcoin miners have encountered a variety of difficulties, all of which have contributed to the decline in hash rate and, consequently, the decline in mining difficulty.
For starters, the government of Iran is said to have decided to prohibit mining for the upcoming few months due to the rising warmth and electric usage.
Iranian hash rate participation is fairly small, but US-based miners also encountered difficulties. One of the biggest BTC miners, Marathon Digital, said that a severe storm in Montana had crippled 75% of its mining fleet. Texas miners also experienced weather-related hardships, although these were caused by extreme heat waves. As a result, they were forced to cease operations, and other BTC miners were forced to fire employees as a result of the ongoing market slump.
Some miners can earn more money by selling their contracted power to the grid rather than utilizing it to mine bitcoin when demand exceeds a particular level. This method, also known as demand response, balances the load on a power grid by altering demand rather than supply.
Jul 27, 2022