bitcoin Miners are expecting a huge increase in the mining difficulty rate as a result of the upward movements experienced during the week and the renewed interest.
Mining difficulty refers to the complexity of transactions made on the BTC network and is updated every 2,016 blocks. It takes about 2 weeks to complete 2,000 blocks. According to the forecast of various crypto startups, the next increase will be around 10%.
In the past weeks, the electricity of large mining companies had to be cut off in many parts of the world. Therefore, the mining difficulty has decreased by 3.6% in the last update.
Cryptocurrency Daniel Frumkin, executive director of mining company Braiins, attributed the expected increase in the hashrate rate to the upward price movement and the right planning of mining companies:
“Due to the winter storm, some cryptomining companies were unable to receive electricity service. As a result, companies started to prepare their plans within the framework of 3-week periods, not 1-week periods. If the price increase is added on top of the scaled plans, the sector may become active again.”
New Equipment Purchase from Miners
Bitcoin miners continued to invest in equipment despite the market conditions in December. Hive Blockchain brought 1,423 Intel-branded machines to its facilities, while Cipher Mining increased its capacity by 40%.
Although the increase in miner difficulty does not have a direct effect on the price, it can be said that it has a positive effect on the price, since high hashrate generally indicates increased trust in the network and increased interest in the network.
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