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Bitcoin mining has become much easier. Should I be worried?
Data from BTC.com show that bitcoin Yesterday mining difficulty decreased by almost 6% to 83.1 trillion hashes. Higher mining difficulty is measured through the energy and resources mined. mine worker Used to maintain network security. Bitcoin becomes more difficult to attack.
Therefore, lowering the difficulty level is not a good sign. But that’s expected to be the case, at least in the short term, experts said. decryption.
“If miners don’t have enough margin to make a profit, they stop mining, which leads to a lower hash rate,” said Nick Hansen, CEO of Luxor mining pool. decryption.
“Hash rate” refers to the rate at which miners generate hashes, a process that encrypts data. This model is known as: proof of workThis is Bitcoin’s main differentiator.
Last month, Bitcoin went through its quadrennial event. bisector. The update halved miner rewards from 6.25 BTC to 3.125 BTC for each block they process.
Miners who keep the network going by producing new coins and processing new transactions. need to work harder To stay in the game. With lower rewards but harder work, many miners are closing up shop altogether.
Nishant Sharma, founder of BlocksBridge Consulting, a research and communications strategy firm dedicated to the Bitcoin mining industry, said this usually happens after the halving.
“If mining rewards fall after Bitcoin is halved, less efficient miners will unplug their machines,” he said. “This self-tuning feature favors fewer operations,” says Sharma. “This is because the remaining miners will receive more rewards due to the reduced difficulty.”
Scott Norris, CEO of mining company Optiminer, Agree: “This is normal after the halving and is healthy for miners with a good network and position,” he said.
“Miners who planned properly will grow, those who deviated from their plans will acquire newer technologies and look for cheaper energy, and everyone will wait for prices to reflect the halving,” Norris added. “Either way, the network will continue to grow.”
price of bitcoin The asset hit an all-time high of $73,737 last month, but is currently down 15% to $62,506, according to CoinGecko.
Higher asset prices make mining the asset more profitable, reward miners higher, and allow more people to stay in business. However, falling BTC prices make this more difficult and further aggravate the effects of the halving.
But Norris says this isn’t surprising.—The same goes for market lulls.
“It happens all the time.” Norris said. “Historically (for Bitcoin) it will be towards the end of the year before the price rises significantly.”