It was estimated two weeks ago that Bitcoin mining difficulty could decrease by 16%. But It has just increased by 6% today, as more miners have put their machines running for the past two weeks.
08 April, 2020 | AtoZ Markets – Bitcoin mining difficulty adjusts every 2,016 blocks based on the number of miners using the network and the time it takes to find the number of blocks. It is a great way to prevent miners from producing too many coins or to close due to different market conditions.
With each positive adjustment, it becomes more challenging to validate a new block. Industrial miners need more sophisticated equipment to stay competitive and make a profit. At the same time, ordinary miners were essentially kicked to the curb.
BTC Mining Difficulty Stands at 14.7T
Meanwhile, the BTC is currently trading at $ 7,279. It has dropped 1.35% in the past 24 hours, and increased by almost 15% last week.
Bitcoin mining difficulty now stands at 14.7 T, almost the level it was in the second half of January, according to the large pool Bitcoin mining BTC.com. During the next adjustment in two weeks, the mining difficulty may increase by 5.55% to 15.53T. However, this forecast will change depending on the hashrate, the computing power of the Bitcoin network. Since March 26, it has increased by about 10%.
Two weeks ago, the Crypto community saw the second-biggest drop in the Bitcoin mining difficulty from 15.9%, to 13.9 T. In theory, three other difficulty adjustments remained until the Bitcoin mining reward halving estimated on May 13.
The current COVID-19 pandemic had a massive effect on the price of BTC. It had an enormous impact on the miners and pushed many of them to make losses.
However, blockchain infrastructure company Blockware Solutions said miners don't necessarily close their platforms immediately. On the contrary, due to contractual obligations and poor liquidity management, miners often operate at a loss. It forces them to sell more BTC than they mined, which then depletes the bitcoin liquidity and brings additional pressure on the market. They end up going bankrupt and have to close the doors.
Think we missed something? Let us know in the comment section below.