Bitcoin mining difficulty will have greater adjustment since May By CriptoFácil


© Reuters. Bitcoin mining difficulty will have greater adjustment since May

On Friday (13), the network of (BTC) should undergo periodic difficulty adjustment, expected to increase 7.58%. As a result, the difficulty would reach 15.6 trillion, while the total hash rate is around 103 exahashes per second (EH/s).

This will be the biggest difficulty setting in exactly three months, as well as being the second consecutive increase in difficulty. In annual terms, the current readjustment should figure as the third largest in 2021.

The new readjustment relieves mining after a sequence of four falls between May and July. At the same time, it shows that miners are managing to relocate their operations after the collapse of the Chinese ban.

Gradual recovery

Mining difficulty is the measure that determines how difficult it is to discover and put into circulation new ones. This difficulty can increase or decrease depending on the activity of miners in the network.

For example, if fewer miners are trying to find BTC, mining becomes slower, whereas the reverse occurs when more miners are on the network. To find this balance, the BTC algorithm calculates the hash rate based on the last 2016 mined blocks, a period that is equivalent to about two weeks.

If during this period the network loses miners, the difficulty in mining decreases, aiming to attract more people to the activity. If more miners enter the network, the difficulty is increased. Therefore, Friday’s adjustment will indicate that mining activity has increased over the past 14 days.

In fact, BitInfoCharts data records that the hash rate has grown since the previous adjustment, which took place on July 31st. The 7-day simple moving average rose more than 5% in this period, indicating a resumption of the upward trend.

The miner and CEO of Arthur Mining Ray Nasser highlights the speed in the recovery of the hash rate. Nasser calls this speed “surprising” but says that with the expansion of the industry and more countries embracing mining, this increase should be the new trend in the industry.

“Countries like Kazakhstan, Russia and the United States are with open arms (and wallets too) to welcome the miners. Here comes Marathon Mining and closes a deal to buy 30,000 new Bitmain machines. The adjustment will continue to rise, and faster and faster, until we return to the level before the ban in China,” explained Nasser.

Miners keep accumulating

Finally, miners continue to accumulate the newly mined BTC, that is, without dumping new currencies into the market. According to data from ByteTree, the accumulation average reached 298 BTC in the last 12 weeks.

In other words, miners are hoarding more than selling. This, combined with the increase in hash rate, can lead to new price spikes. After all, with increased demand and less BTC in circulation, the trend is for new valuations.

At the time of writing this text, the BTC is down 2.47%, worth US$ 44,440 per unit. The correction coincides with the current movement of miners, who sold 188 BTC more than mined in the last 24 hours.

By Easy Crypt