Bitcoin

Experts say that Bitcoin’s level of difficulty could cause miners to log out

Some Bitcoin (BTC) miners may become unprofitable again due to the recent difficulty adjustment.

Earlier this week, The level of difficulty for network mining increased by 14.95%, the biggest increase since January 2018. The regular update, which takes place every 2016 blocks, was pre-coded in the blockchain in order to maintain the mining speed for about 10 minutes during a block.

The latest adjustment could thwart an emerging trend in the mining sector: previous generation machines are back online after halving. In May lThe bitcoin block reward was cut in half, causing a significant number of miners to shut down the older machines.They want to sell their equipment or move to places with cheaper electricity.

Experts say that Bitcoin’s level of difficulty could cause miners to log out
Experts say that Bitcoin’s level of difficulty could cause miners to log out

As Karim Helmy, data analyst at Coinmetrics, told Cointelegraph, the Antminer S9 – a cheaper and once extremely popular mining device from Bitmain – was brought back online due to two negative adjustments of 9.29. % and 6% before the last update in early June.

“In order to, The S9 actually came back after the last level of difficulty, which was a big downward move, not this one. His return to the Internet was the cause of the increase in the hashrate that caused this major upward adjustment.“”

Thomas Heller, Director of Global Business at Bitcoin’s leading mining group F2Pool, confirmed that previous generation units have reappeared after they were “profitable to the limit” again. However, he added that the increase in the hash rate was also caused by a new generation of ASICs like MicroBt M30 and Bitmain Antminer S19, which were activated for the first time after they were finally shipped to their owners:

“Before the difficulty setting, the recent increase in the hash rate is mainly due to the fact that older generation machines are switched on again and some M30, S19 and A11 machines are switched on for the first time.”

Now that it has become much more difficult to mine Bitcoin, some units may be shutdown or migrated to other currencies that support the SHA256 algorithm again, Heller noted:

“”A main indicator is the daily mining income per TH / s. Currently, approximately 1 USD / day is generated for BTC mining at 1 TH / s. Some miners will likely switch to BCH and BSV, others will shutdown machines to wait“”

Helmy agreed that older generation miners are likely to go offline again, but noted that local conditions “should be identical to what they were immediately after halving” for this to happen:

“Many other factors play a role here, including the rainy season in China and the price of Bitcoin.”

Only because of the recent adjustment “there will be no significant changes in the mining landscape,” Heller concluded:

“The dance between price, hashrate, and difficulty continues as miners continue to optimize their OPEX costs and try to lower them.”

The hash rate can decrease slightly

As Cointelegraph noted, BTC’s hash rate fluctuated above 100 EH / s, while a blockfolio analyst argued that “since the market’s historic upward trend in 2017/18, more hashrates have joined the network than EVERY time.” “

Both Heller and Helmy agreed that the hash rate could decrease slightly due to a sharp increase in difficulty, but this would largely depend on other factors, such as the price of electricity and the price of Bitcoin.

The Coinmetrics specialist also found that an intensification of the power struggle in Bitmain could result in less modern miners being kicked out, which in turn could leave the network without additional hash power.

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