Bitcoin miners are rowing against the tide: increasing difficulties and falling profitability

Bitcoin miners row against the tide: increasing difficulty and falling profitability - https bucketeer e05bbc84 baa3 437e 9518 public images 294d39b0 a715 4243 bc53 bc7cb74aac83 1200x817Bitcoin miners have not been overwhelmed by the current low profitability of this business and continue to increase their mining power, to the point of setting a new record in BTC mining difficulty.
However, even those who want to trade can take advantage of this moment of the market by using platforms such as Bitcoin Revolution.

Bitcoin's mining difficulty broke the record again after hitting 31,2 trillion (T) just hours ago. The previous value was 29,7 T, which implies a 5% increase over the previous setting.

It is worth noting that Bitcoin's mining difficulty adjustment is a mechanism that seeks to stabilize block production on the network. This adjustment is made automatically every 2016 blocks extracted, a job that takes about two weeks.

If the average hashrate of the network is too high, the difficulty increases, while if the average hashrate is low, the difficulty of mining decreases. Therefore, the Bitcoin network tries to keep an average of 1 block mined every 10 minutes.

Like the difficulty of mining, as expected, the hashrate of the Bitcoin network is also increasing. According to statistics shown by Braiins, Bitcoin's hash rate has returned to its all-time high of 228 exahash per second (EH / s).

This is a quick recovery from the slight decline a few days ago.

The lower the price of the hash, the higher the hashrate

The profitability of Bitcoin mining, relative to hashrate and mining difficulty, is on the decline. Bitcoin hash price today is $ 0,12 per terahash per second per day (TH / s / d). This means that an Antminer S19 ASIC miner should have a daily gross profit of around $ 11,40, although this varies depending on the cost of electricity.

Fluctuations in the hashprice are mainly affected by changes in mining difficulty, transaction fees and the market price of Bitcoin.

The increased difficulty of the network, coupled with the drop in the price of BTC, led to a drop of more than 50% in the hashprice from the high point of the year at the end of March. In fact, the current price of hash is the lowest in the past 12 months.

The most interesting aspect of this hash price drop is the reaction of Bitcoin miners, who have steadily increased their hash rate, instead of decreasing their participation in mining to save on operating costs.

A look at the first chart in this article shows that Bitcoin's hashrate has been steadily increasing since July 2021, ignoring the small fluctuations it may have experienced.

The tendency to increase mining power when profitability is low is not new among Bitcoin miners. On other occasions where the network has experienced similar contexts, the response of the cryptocurrency mother's workers has been the same.

A striking example is the statistics of September 2021, when the Bitcoin hashrate continued to rise while the profitability of mining fell by more than 25% in one month.