The difficulty of mining bitcoin
BTC$105,285.37
Blockchain will be the most deleted since July 2021 after a 30% slide in the amount of mining power that secures the network in two weeks.
Data from mempool.space shows that a downward difficulty adjustment of approximately 9% is expected within the next five days. That’s the most common four years ago when Exhahash (EH/s) with a total computational power used to mine blocks, the Chinese mining ban, was traded nearly $30,000 with exhahash (EH/s) with a hash rate of 50% to 58, and Bitcoin.
The difficulty is adjusted for every 2,016 blocks, ensuring that the blocks continue to be mined at approximately 10 minutes intervals. According to GlassNode data, after the recent decline, the hashrate is now below 700 EH/s. The largest cryptocurrency by market capitalization has recently been trading around $105,300.
Correcting for significant hashrates and difficulties is not uncommon in the summer of the Northern Hemisphere. The rise in electricity prices driven by higher air conditioning demand and tense power grids often lead to miners temporarily shutting down machines, especially old or less efficient machines. This seasonal pattern has been observed over the past few years.
The expected reduction in mining difficulty provides meaningful relief to miners. Miners’ revenue per Hashprice, or Exahash, is currently $51.9. This metric reflects the estimated daily income of dollars earned by miners who contributed to the network, based on block rewards and transaction fees.
As difficulty decreases, mining becomes easier. This means that miners can earn more revenue for the same amount of calculation effort. Assuming Bitcoin prices and trading fees remain stable or rising, Hashpris should rise significantly in the coming days, which will help offset recent profitability pressures.