The greatest difficulty in Bitcoin mining will fall

If current estimates hold true, the difficulty of Bitcoin (BTC) mining will see the biggest decline in the network’s history, dropping to levels not seen in over a year, and improving BTC miners’ profit margins .

The greatest difficulty in Bitcoin mining will fall

Bitcoin mining difficulty, or a measure of how hard it is to compete for mining rewards, is projected to drop by nearly 27% in less than a day, as BTC.com’s mining pool at 11 am yesterday: 27 UTC estimated.

This would be the third straight decline and the highest ever, shortly after the 18% correction in October 2011.

Mining difficulty hit an all-time high of 25.05T in mid-May, and the impending slump will bring it down to 14.63T, a level not seen since early April 2020.

Bitcoin’s mining difficulty is adjusted roughly every 2 weeks to maintain a normal block time of 10 minutes. However, the 7-day block time for the July 1st simple moving average was 16.8 minutes, the highest since December 2009. It’s been rising steadily since mid-June when it comes to hashrate or strength. Network billing has been declining since June due to a regulatory action against BTC miners in China. Between then and July 1, the 7-day simple moving average hash rate fell 41%.

According to ByteTree, miners have spent more money than they own in the past week – more than three months ago.

“Block time, a leading indicator for future optimizations, has been confirmed more quickly, so it is possible that the difficulty adjustments will be adjusted as soon as the next one,” said Edan. Yago, founder of Bitcoin-based DeFi provider Sovryn, said in an An email comment, adding that “Bitcoin mining is such a competitive market that no mining rig will fail. It works for a long time.”

Based on a recent network survey by the Bitcoin Mining Council, the Bitcoin mining sector achieved a sustainable energy mix of 56% in the second quarter of 2021, “making Bitcoin one of the cleanest industries in the world,” said one of the council’s founders, Michael Saylor, head of MicroStrategy.

The first voluntary survey focused on two metrics, power consumption and the sustainability mix, with BMC collecting sustainability information from more than 32% of the current Bitcoin network, according to the press release.

However, these results are criticized by Cryptoverse natives, who argue that the survey methodology was not disclosed while the sample size is too small and the suppression of mining in China has caused some large changes in the hashrate distribution.

However, others argue that the sample size is reasonable, and although the survey was conducted in the second quarter, it is not necessarily a factor that led to crackdown.

The press release covered the matter as Darin Feinstein, founder of BTC mining company Blockcap and Core Scientific, stated that the survey comes at a “critical time” as mining activities continue to decentralize and miners are leaving China.

According to Nic Carter, partner at Castle Island Ventures, “the 32% hashrate disclosure security is extremely impressive” and “now we have bottom-up data for a third of the network”.

Still, Carter “encourages” [các]The panel publishes an additional methodology as the 56% sustained strength value in question “is based on a number of assumptions made by the rest of the world”.

Saylor said he was “pleased to see that the Bitcoin mining industry has volunteered to provide key information to the public and policy makers, particularly in relation to clarifying common misconceptions about the nature and scope of the Bitcoin Energy Consumption “.

Saylor says this is the first quarterly release, and more are expected.

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