Mining Bitcoin is now much easier, but is there anything to worry about?
Data from BTC.com show that Bitcoin Yesterday, the mining difficulty decreased by nearly 6% to 83.1 trillion hashes. Increases mining difficulty as measured by energy and resources. miner Use to keep your network secure. Bitcoin is more difficult to attack.
Therefore, a decrease in difficulty is not a good sign.But experts say this is likely to happen, at least in the short term. Decryption.
“If there is not enough margin for miners to make a profit, they will turn off and that will cause the hashrate to drop,” Luxor mining pool CEO Nick Hansen said. Decryption.
“Hash rate” refers to the speed at which miners generate hashes, the process of encrypting data.This model is known as proof of worka key differentiator for Bitcoin.
Last month, Bitcoin cut in half. With this update, a miner's reward has been halved from 6.25 BTC to 3.125 BTC for each block he processes.
Miners keep the network running by generating new coins and processing new transactions. I have to try harder To stay in the game. And because the pay is low but the work is hard, many miners are closing up shop for good.
Nishant Sharma, founder of Broxbridge Consulting, a research and communications strategy firm specializing in the Bitcoin mining industry, said this is typically what happens after a halving.
“After the Bitcoin halving, less efficient miners will turn off their machines due to reduced mining rewards,” he said. “This auto-tuning feature favors leaner operations as the remaining miners receive more rewards due to the reduced difficulty,” he said Sharma.
Scott Norris, CEO of mining company Optiminer, Agree: “This is a normal occurrence after a halving event and is healthy for the network and well-positioned miners,” he said.
“Miners that plan properly will grow, and while we all wait for the miners to see prices that reflect the halving, they will get newer technology and find cheaper energy. “It will be,” Norris added. “One way or another, the network will continue to grow.”
bitcoin price The asset hit an all-time high of $73,737 last month, but is currently down 15% to $62,506, according to CoinGecko.
The higher the price of an asset, the more profitable it is to mine the asset, the higher the reward for miners, and the more miners can stay in business. However, the fall in BTC price will make this even more difficult, further exacerbating the effects of the halving.
Still, Norris says this isn't surprising.—And it's not like the market is stagnant either.
“It always happens like this,” Norris said. “Historically, the last time you see a significant price increase is towards the end of the year.” [for Bitcoin]”
