With the second post-halving bitcoin (BTC) mining difficulty adjustment set to occur soon, miners may when again breathe a sigh of relief after the previous such event also made life easier for players in the extremely competitive market.
This time, difficulty, a step revealing how hard it is to compete for mining rewards, may drop practically 2 times more than 2 weeks back, when it reduced by 6%.
Tomorrow, it may drop by more than 11%, to 13.45 T, or lower than the level seen at the start of this year, when BTC traded in a range of USD 7,000 – USD 9,000, according to information (14: 30 UTC) by significant Bitcoin mining pool BTC.com
It would also be lower than the level seen after a historical difficulty adjustment following crypto’s Black Thursday in March.
Today, commenting on the adjustment after the release of its earnings figures for May, Argo Blockchain, a BTC mining business noted on the London Stock market, stated that the business is well-positioned for any difficulty modifications, which the upcoming adjustment will likely enhance their margins:
“This week will see another BTC mining difficulty adjustment and we expect a further drop of between 4%-6% in difficulty based on current hashrate and projections. This change is expected to result in improvements to our overall mining margins,” the business’s CEO, Peter Wall, stated in a declaration.
On the other hand, crypto mining publication Miner Update argued just recently that this djustment will be completely based on the computing power which miners release at the current difficulty level and block aid of BTC 6.25
“The next difficulty adjustment will alter the network to the hashrate deployed over the next ~2 weeks and it will afterward become clear whether users are paying higher transaction fees post halving,” they stated.
While the average BTC deal cost dropped more than 50% because mid-May, it is still around 5 times higher than it was in April.
As reported, information from ByteTree shows that miners are now offering more BTC than they create.
First spend tracks the number of coins that move from the miners’ wallets over that duration. Source: terminal.bytetree.com.
The mining difficulty of Bitcoin is adjusted every 2 weeks (every 2016 obstructs, to be exact) to keep the regular 10- minute block time. This implies that if there are lots of miners contending amongst themselves and propagating blocks in less than 10 minutes, the difficulty of the next puzzle will be increased; if there are couple of miners and it takes them a lot longer to discover an option, the difficulty is reduced – both times just enough to keep block times at around 10 minutes.
At pixel time, BTC trades at USD 9,570 and is down by 6% in a day, cutting its weekly gains to less than 5%.