Difficulty in Bitcoin mining jumps the second time following the mid-July dip as the ecosystem recovers continuously.
The Bitcoin mining ecosystem witnesses a mining difficulty that increased after China reported a crackdown facing the mining operations.
The peak of the crackdown resulted in a global hash rate of up to three-quarters. BTC.com’s latest data reveals a Bitcoin mining difficulty dated back to June 17, 2021.
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The Bitcoin mining ecosystem recorded a 13.77% rise in difficulty in two successive jumps surpassing 15 Terahashes (TH) since mid-June. This owes to the fact that Bitcoin miners from China now settle in various crypto-friendly countries.
It’s expected that the next adjustment would be on August 27, and it aims to raise the mining difficulty to about 15.63TH.
The mining difficulty of Bitcoin reached its peak of 25TH before the crackdown on local mining operations in China. The unexpected decline in the number of miners in China has decreased the strife in confirming blocks. This enabled the existing miners on the Bitcoin network to earn more returns.
Reason for Bitcoin Mining Difficulty in China
According to Statista data, China’s commitment to mining Bitcoin (BTC) reduced to 46%, unlike the United States. However, they host close to 17% of the mining hash rate globally, indicating rising from the slack.
IN a CNBC report, as stated by Jason Deane, the adjustment mechanism of Bitcoin’s latest difficulty affects its mining profit.
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Jason, a quantum Economics and crypto analyst, revealed that this mechanism reduced the mining profit by 7.3%. CNBC is an American news channel Headquartered in Englewood Cliffs, New Jersey. The Network is primarily designed to carry business day coverage of U.S. and international financial markets.
While rounding up the discussion, Mike Colyer said, “Machine of various kinds originates from China, and they need new homes.”
Mike Colyer is the Foundry CEO, a digital currency group based in New York. Coyer has concluded that the modern generation of Bitcoin mining rigs will be more efficient. It will double the severe power of an equivalent amount of electricity.
Moreover, China’s rally against mining Bitcoin is based on energy concerns due to the electricity consumed by mining operations.
While Bitcoin mining difficulty rises, BTC continues its bullish trend | Source: BTCUSD on TradingView.com
After the crackdown, the countries that became the best alternatives for Bitcoin miners were Kazakhstan, Russia, Canada, and the U.S. Notably, the rising hash rate of Bitcoin will later translate into higher computational costs.
Featured image from Pixabay, and chart from TradingView.com