bitcoin Mining difficulty fell 2.14% on Tuesday after four consecutive increases, one of which was as high as 9.26% in August.
Bitcoin Mining Difficulty Drops 2.14% After Four Consecutive Increases
According to incoming data, the network’s hashrate has also dropped by 2.04% since the last update on September 13.
bitcoin infrastructure company of Luxor Technologies CEO Ethan Vera said in a statement:
“Declining mining economy is causing high-cost and low-yield miners to shut down”
Hashrate will likely only grow for the rest of the year as a function of increased machine efficiency.
As Bitmain S19 XPs are delivered to mining farms, it will replace lower efficient machines and increase network hashrate.
Correspondingly, these machines are going offline as some miners liquidate their hardware in the middle of a bear market, Vera said.
In contrast, the Bitcoin mining company CleanSpark made headlines last month by purchasing machinery and facilities from other operators.
Earlier this month, CleanSpark purchased its second facility in Georgia from a competitor and agreed to provide that company with up to 30 megawatts of temporary hosting while transferring miners to another location.
Mining difficulty refers to the complexity of the process behind mining, where miners constantly try to find a hash below a certain level.
Miners who discover this hash get rewards for the next block of transactions. The difficulty level is adjusted every 2,016 blocks, or approximately every two weeks.
*Not investment advice.
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