Bitcoin miners disconnect due to low profitability; most resistant

Key facts:
  • Yesterday’s Bitcoin Mining Difficulty was revised to 29.57T.

  • The Bitcoin hash rate has also dropped to 206 EH/s.

The participation of bitcoin miners in the network has decreased, a possible direct effect of the price drop that has been reported in recent weeks. This is how the latest mining difficulty mod showed, which has yielded more than 2% in the past hours. This is the second largest drop recorded so far in 2022.

According to figures from Brains Insights, a bitcoin mining analytics company, The difficulty underwent a downward adjustment on Wednesday, June 22nd by 2.35% to settle at 29.57 trillion (T). The difficulty is the mechanism that regulates the issuance of bitcoins and ensures that they remain within the 10-minute range. It is modified every 2016 mined pieces.

This fall comes on the heels of the first deeper reported this year, which was last May 25, Just when the profitability of bitcoin mining began to crunch, averaging 10 cents on the dollar (USD) As profits for each sluggish invested in the network. At that time, the difficulty decreased to 29.89 tons, which made it possible to show the interruption of mining equipment due to the low profit left by the activity.

The difficulty drop after about a month seems to have the same origins, with the price of Bitcoin dropping at the end of last week, to annual lows of $ 17,500, dragging returns to a meager 7 cents. What is remarkable is that this decline, despite being the second, is deeper than the decline recorded last month.

The chart shows a decrease in the difficulty of Bitcoin price hashing, hashing and mining
Second and Deepest Bitcoin Mining Difficulty Suffered
Autumn of the year Source: Brains.

As in May, the current scenario appears to be the same. Drop in price and profitability could shake confidence of Bitcoin minersespecially those that are smaller in size and with less efficient equipment, which start to operate at a loss, which can lead to a disconnection.

In fact, as reported by CriptoNoticias, Bitmain’s Antminer S9 miner (13.5 TH/s), which was one of the most used mining equipment, was contributing less than 2% to Bitcoin’s processing power, as newer hardware was already replacing it with work .

It should be noted that in countries such as those in Latin America, where there is a nascent mining industry, the use of S9 miners is a trend. So much so that there are a lot of ads on social networks to sell these teams.

Retail also faltered

As another example of a decline in bitcoin mining activity (which is not so severe that the network is compromised), there is the hash rate, or the sum of computing power used to process transactions, which also experienced a slight drop after a difficulty adjustment.

According to data from another Bitcoin mining analytics company, Hashrate Index, The hash rate fell 2.35% in two days, after going from 211 EH/s on June 21 to 206 EH/s, At the conclusion of this press release.

Bitcoin’s current hash rate is lower than that recorded on May 25, when the difficulty was adjusted downward. So, The downward trend is expected to continue This, as in the past, is quickly reversed by the connection of new and old miners.

The chart shows a drop in the Hass rate for Bitcoin to the level of 206 EH/s
The hash rate also decreased with the difficulty to 206 EH/s. Source: Hashrate Index.

In any case, the current scenario could quickly change, thanks to Bitcoin’s volatility, which could lead to a major recovery. When this article is published, 1 Bitcoin is trading above $20,000, although this is a drop of more than 50% from its last all-time high, It seems a stable character, calms the nerves among those who, even with everything, continue to work, like miners.

 

 

 

 

 

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