Bitcoin Mining Difficulty Increased By 14.5%. What Should Miners Wait For?
After the Bitcoin halving, the mining difficulty increased to a maximum and reached a two-year peak. Many experts previously announced the onset of the “death spiral” in the crypto industry. Let’s look how the miners reacted to this and what has changed in the activities of mining equipment manufacturers.
BTC hash rate is gaining momentum
The increase in mining complexity has become a real threat to the survival of many miners. After halving Bitcoin was worried in the air, which intensified after the news about the intensification of the sale by miners of previously mined coins. Many experts in May made disappointing forecasts regarding the mining industry because the hash rate increased by 14.95%.
But today the situation has stabilized: despite the increasing complexity of mining, the hash rate has begun to recover. According to Blockchain.com, from June 11, the hash rate has increased by 4 million TH/s to 105 million TH/s.
It is obvious that miners have adapted to current conditions and continue to remain active, despite a significant increase in the number of operating expenses. Adjusting the complexity of mining did not lead to the so-called “death spiral” when production was supposed to be massively cleared of weak miners and leave extremely strong players in the business. The trading platform TradeBlock commented on this situation:
“The complexity of mining has never been so high. Despite the tightening of miners, the death spiral failed miserably.”
Mining continues to be profitable
The rise in the price of Bitcoin mining twice did not leave the miners. Many large mining companies adhere to forecasts according to which Bitcoin expects a rally and price rise to historical highs in the long term. This belief is so strong that over the past month there has been an increase in requests for the purchase of mining equipment.
We also see that today the mining industry has developed favorable conditions. In particular, in the Chinese province of Sichuan, electricity costs fell due to the onset of the rainy season. Today, Bitcoin mining is estimated at $5,000-$6,000. Bitcoin remains stable in the price range of $9,000-$9,500. Thus, miners continue to make a profit and therefore do not see the need to sell their coin stocks.
Data from the last 7 days shows that miners accumulate coins: 6,150 BTC were generated and 4,708 BTC were sold.
How did manufacturers of mining equipment react to the consequences of BTC halving?
After halving the remuneration, mining equipment manufacturers force to scale up the development and production of more powerful ASICs as soon as possible. Elsa Zhao, the spokeswoman for MicroBT, commented on this situation:
“Today, the core of our target audience is large mining companies that are interested in the most powerful equipment with quick payback. Private miners now account for a small portion of our customers due to higher mining prices.”
Thus, competition among large mining companies will intensify, which is likely to become a driver of growth in Bitcoin hashing speed.