Bitcoin Mining Difficulty Score Rises Again As BTC Price Goes Up
Bitcoin mining difficulty rises the second time following the mid-July dip as the ecosystem recovers continuously. The Bitcoin mining ecosystem witnessed 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.
The Bitcoin mining ecosystem difficulty rose 13.77% 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.
The next adjustment is likely to occur on August 27, and it aims to raise the mining difficulty to about 15.63TH.
Bitcoin mining difficulty 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.
Bitcoin Mining Difficulty & 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.
According to a CNBC report, the adjustment mechanism of Bitcoin’s latest difficulty affects its mining profit.
Jason Deane, a quantum Economics and crypto analyst, told CNBC that this mechanism reduced the mining profit by 7.3%.
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.
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.
