Bitcoin mining has become more difficult than ever - Takeny

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Friday, October 23, 2020

Bitcoin mining has become more difficult than ever

 


Bitcoin block mining difficulty increased by 3.6% on Monday, marking an all-time high.


But the new change puts additional pressure on miners.


Although not the most significant jump in the history of Bitcoin Mining Difficulty Adjustment, the 3.6% rally raised the total bitcoin network segmentation difficulty to a record high of 17.56 trillion.


The last time network difficulty approached this figure was in July.


Bitcoin mining difficulty adjusts approximately every two weeks.


When blocks are mined too quickly or too slowly, the difficulty is adjusted to re-check the speed.


The upward revision in bitcoin mining difficulty is usually associated with a similar increase in network segmentation strength (the amount of computing power on the network).


On August 15th, Bitcoin's hash rate reached a record high of 136 hours per second (EH / s).


After a short recession the following week, the retail rate recovered to around 120 EH / s, apparently thanks to the rainy season in China, as China is a major region for bitcoin mining due to cheap hydropower.


Bad news for miners?

According to Mr. Thomas Heller, chief operating officer of bitcoin mining company HASHR8, the combined increase in both hash rate and difficulty could cause problems for less sophisticated miners - those with outdated mining equipment.


Heller explained:


If the difficulty and hash rate continue to rise, the old machines will struggle to continue mining, the S9 is the most common mining machine used, still profitable at $ 0.03 / kWh of power available in China now. However, after October, when the rainy season is over, and electricity prices are at $ 0.05 / kWh or more, the S9S is likely not profitable at that price.

According to data from BTC.com, the next difficulty adjustment, projected on September 7, is expected to lead to another increase in the difficulty rate, this time by 3.5%, which means pushing the difficulty of the Bitcoin network to another all-time high towards the level of 18 trillion. .

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