Bitcoin Mining Problem Is Declining – Here’s Why

Bitcoin has become too easy for me – should we worry?

Data from BTC.com It shows That's what he said. Bitcoin Mining difficulty fell 6% yesterday to 83.1 trillion hashes. The higher the difficulty of mining – it is measured by the power and the resources. Miners Use it to secure the network – the more difficult it is to attack Bitcoin.

So falling into trouble is not a good sign. But experts say it is expected at least in the short term. Decrypt.

Nick Hanson, CEO of the Luxor mining pool, said: “If there is not enough margin for miners to make enough profit, they will shut down, causing the hash rate to drop.” Decrypt.

“Hash rate” refers to the speed at which a miner produces a hash—the process of encrypting data. This is known as the model Proof of workA key difference for Bitcoin.

Bitcoin had a four-year event last month Cut in half. The update will halve the miner's reward from 6.25 BTC to 3.125 BTC for each block they make.

Miners producing new coins and processing new transactions to keep the network offline – now He should do more To stay in the game. And with small rewards but hard work, many miners are closing up shop altogether.

Nishant Sharma, founder of Blocks Bridge Consulting—a research and communications strategy firm dedicated to the bitcoin mining industry—says this usually happens after the halving.

“After the Bitcoin halving, the decline in mining rewards will cause less efficient miners to withdraw their machines,” he said. “This self-healing feature favors lean operations, as the remaining miners receive additional rewards due to reduced complexity,” Sharma said.

Scott Norris, CEO of mining company Optiminer, agreed: “This is a normal event after a halving event and is healthy for the network and the miners that are in good shape,” he said.

“Miners who plan properly will grow or lose, they will find new technologies and get cheap energy while everyone is waiting for the price to reflect half,” Norris added. “Either way, the network will continue to grow.”

The price of Bitcoin It's also playing into the mining woes: The asset touched a high of $73,737 last month, but is down to $62,506 today, a 15% drop, CoinGecko reports.

If the property was valued higher, mining the property would be more profitable, the rewards for the miners would be higher and more people would be able to stay in business. But the decline in the value of BTC makes this even more difficult, with a halving compounding the effect.

Still, Norris says that's not surprising.– And it's also restless in the market.

“It always happens that way,” Norris said. “Historically, it will be late in the year before we see much of a price increase. [for Bitcoin]He said.