Good news for Bitcoin -Miner: The so-called mining difficulty, i.e. the degree of difficulty in prospecting, has plummeted by 28 percent. The reason is the crypto crackdown in China.
China has been in the past few weeks cracked down on bitcoin mining projects. Most recently, the authorities literally turned the power off to miners in Sichuan Province. Because more than half of the mining capacities were located in China, China’s actions also had an impact on the Bitcoin blockchain. The corresponding algorithm now responded with a further reduction in the mining difficulty.
Hashrate dropped by 50 percent
The degree of difficulty of prospecting collapsed by 28 percent on Saturday alone – the sharpest decline in the history of the largest cryptocurrency to date. At the end of May and mid-June it had already gone down by 16 and five percent respectively. In step with the difficulty of Bitcoin mining, the hashrate also fell to 87.7 exahashes per second. For comparison: in mid-May the hashrate was around 180 exahashes per second. The hashrate was last updated in December 2019.
More on the subject
- Mining difficulty collapses: Bitcoin mining has not been as profitable as it has been for a long time
Bitcoin rate picks up
As a result, according to experts, the prices for transactions have dropped from ten US dollars to around six dollars. The hope of an increase in Bitcoin transactions and the increased attractiveness for miners has caused the Bitcoin price to rise by over $ 2,000 to around $ 35,500 since Saturday morning. In addition, crypto miners should benefit from the simpler conditions in the coming weeks. Bitcoin mining expert Brandon Arvanaghi speaks to CNBC of a “sales party” for miners that could last until the end of the year.
