Bitcoin continues its upward trend - BTC mining difficulty rises again
The level of difficulty in bitcoin mining has risen for the second time after the slump in mid-July. The reason: the steadily recovering ecosystem.
The bitcoin mining ecosystem is witnessing a rise in mining difficulty after China announced a crackdown on mining operations. Recent data from BTC.com shows bitcoin mining difficulty dating back to June 17, 2021.
Since mid-June, the bitcoin mining ecosystem has seen a 13.77% increase in difficulty - to over 15 terahashes (TH) - in two consecutive jumps. This is due to the fact that bitcoin miners from China are now setting up shop in various crypto-friendly countries.
It is expected that the next adjustment will take place on 27 August and the mining difficulty will rise to around 15.63 TH.
Bitcoin's mining difficulty peaked at 25TH before the crackdown on local mining in China. The unexpected decline in the number of miners in China has reduced the difficulty in confirming blocks. This has allowed existing miners on the bitcoin network to make more money.
Reason for bitcoin mining difficulty in China
According to Statista, China's engagement in Bitcoin (BTC) mining has dropped to 46%, unlike the United States. However, the country hosts almost 17% of the world's mining hash rate. This suggests that it is recovering from the doldrums.
In a CNBC report, crypto analyst Jason Deane explains, "The adjustment mechanism of the latest bitcoin difficulty is affecting mining profits.
According to quantum economist Deane, this mechanism reduces mining profits by 7.3%. CNBC is an American news network headquartered in Englewood Cliffs, New Jersey. The network is primarily focused on reporting on the US and international financial markets.
Concluding the discussion, Mike Colyer states:
"MACHINES OF VARIOUS KINDS ARE COMING OUT OF 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. It produces twice the output for an equivalent amount of power.
Moreover, China's revolt against bitcoin mining is based on energy concerns due to the power consumed by mining operations.
Nach dem harten Durchgreifen wurden die Länder Kasachstan, Russland, Kanada und die USA zu den besten Alternativen für Bitcoin-Miner.