Notable Change in Bitcoin Mining Difficulty: The Biggest of 2022 Could Come!

Next Bitcoin (BTC) The mining difficulty update could be the biggest drop this year.

According to Forecasts, the Biggest Drop of 2022 in Bitcoin Mining Difficulty Will Come

By most estimates, the adjustment will occur early next Tuesday and could be between -8% and -7%. At the time of this writing, Luxor estimated the decrease in mining difficulty to be -7.98%, Braiins -7.9%, and Bitrawr -7.9% to -7.5%.

These numbers may change over the next few days depending on how many machines will be in and out, but they still paint a pretty clear picture of the current state of the mining economy.

Companies are hurting, and Core Scientific, the largest by hash rate, has warned that it may have to file for bankruptcy. The industry noted that margins have shrunk due to rising energy costs and falling Bitcoin price. And some companies are cash-strapped and in debt.

“The upcoming difficulty adjustment will be significantly negative as hash price levels reach resistance points as mining profitability thresholds turn negative,” said Ethan Vera, COO of bitcoin mining software company Luxor, which operates a mining pool.

Hash price refers to the income miners earn from a hashrate unit in a given time period.

On top of that, Vera added, “the fact that many distressed miners are unplugging and relocating their machines puts additional downward pressure on network difficulty.”

On the other hand, Foundry Vice President of Business Development Jeff Burkey said, “The difficulty drop is a result of miners shutting down machines that are no longer profitable.”

William Foxley, director of media and strategy at Compass Mining, said:

“I actually think we’ll potentially see another drop because it’s not profitable to sell machines at this price. Many S19J Pros are not profitable.”

*Not investment advice.