Bitcoin mining difficulty set for 8-month record gains

The most recent on-chain data demonstrates that hash rate and difficulty are rapidly increasing, far from capitulating, as reported by Cointelegraph.

BTC, USD is not deterring miners, who have just come out of their own multi-month capitulation phase despite being down about 7% in a week. As August comes to a conclusion, fundamental indicators are firmly in “up only” mode as hardware and competition has returned to the network, Cointelegraph noted.

This is easily encapsulated by difficulty, which is expected to rise by an estimated 6.8% next week. The difficulty is a measure of, among other things, the intensity of competition among miners for block subsidies. This will be the greatest upward difficulty adjustment since January of this year, according to statistics from the on-chain monitoring resource BTC. Additionally, if the 6.8% increase occurs, the difficulty will increase to previously unheard-of levels.

In the most recent issue of its regular newsletter, “Miner Weekly,” published on August 27, Bitcoin mining consultancy business Blocksbridge predicted that “we may see a difficulty boost doozy enough to create a new (or close to new) ATH in a few days.”

Nevertheless, Blocksbridge pointed out that the existing situation was difficult for all network users. Older equipment owners, for instance, were feeling the pinch as a result of spot price declines and an equivalent decline in the value of block subsidies and fees relative to expenses like power. 

(With insights from Cointelegraph)

Also Read: Launch of Compound v3 “Comet” with support for single borrowing model

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