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September 19, 2021
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Bitcoin

Bitcoin mining difficulty will increase for the first time in 8 weeks

Bitcoin’s hashrate increased from 85 exahash per second (EH / s) to 125 EH / s on July 14. The increase in hashrate meant that the next shift in mining difficulty could go north for the first time in eight weeks.

Four consecutive declines in difficulty have turned out to be the biggest slippage in Bitcoin history, and it looks set to be over in four days.

Hashrate goes north

The price of bitcoin (BTC) fell for the next several weeks while China was cracking down on miners. On May 15, the price of bitcoin began to plunge from just above $ 50,000. dollars, so that on May 19 will be just above the 30 thousand zone. dollars.

The drop in price essentially deprives miners of revenues, and when BTC began to slide on May 15, mining difficulty increased by a staggering 21.53%. This meant that it was more than 21% harder for miners to find a block.

To make matters worse, the Chinese government – in various provinces – cracked down on bitcoin miners and banned this activity in certain areas. The miners were told they had to close their mines by a certain date.

Before June 9 and two small drops to 137 EH / s, the hashrate managed to stay above 150 EH / s. China’s actions, however, had a big impact on Chinese miners, and on June 28 the hashrate was just 66 EH / s.

Fortunately, on May 29, mining difficulty fell by as much as 15%. As the price of BTC also fell, making it harder for miners to make profits, those who help secure the blockchain have benefited from three consecutive dips in difficulty.

Difficulty expected to increase by 3-5%

All four consecutive declines in mining difficulty have made finding BTC blocks 54% easier in the past two weeks, compared to the difficulties prior to May 13. Now, however, the difficulty is likely to increase by 3-5%.

If the estimates are correct, it will still be nearly 50% easier to find BTC blocks than in mid-May 2021. However, this will depend on how the network hashrate will look like in the next four days.

If the hashrate increases significantly from now to then, the increase in difficulty may exceed 5%. However, if it drops drastically, the difficulty may also be at a lower level. At the current level of hashrate, a 3-5% increase is expected, which should not be too much of a challenge for miners.

As of this writing, Antpool is the largest BTC mining pool with 19.26% hashrate and 19 EH / s. Behind Antpool are Binance (12.47%), F2pool (11.82%), Poolin (11.38%) and Viabtc (10.50%).

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