Bitcoin news

Bitcoin Mining in difficulty: 6% drop after Halving

Since the profitability of the miners has significantly increased since the last one Bitcoin halvinghas registered a drop of over 6% if compared with the pre-halving period.

Last week, the blockchain technology of Bitcoin was affected by the most anticipated event of 2020, theHalving Bitcoin.

The halving of Bitcoin is the event that occurs every 210.000 blocks and leads to an increase in the complexity of the Bitcoin network algorithms and reduces the rewards of mining.

With the last halving, i awards of Bitcoin mining they decreased from 12,5 BTC to the current 6,25 BTC per block mined.

With average mining costs rising and rewards falling, the miners' profitability has depreciated.

After halving Bitcoin, over 20 exhahash per second (EH / s) of computing power were turned off by the BTC network.

Bitcoin hash rate plummeted 20%

Considering the 7-day moving average, the hash rate of the BTC it plummeted 20% before Halving BTC occurred.

Before the middle of May 11, the average BTC rate was 122 EH / s and now stands at 92,7 EH / s.

Almost all of the top ten Bitcoin mining pools have seen a hash crash rate of 30% on average.

On the other hand, the difficulty of Bitcoin mining has dropped by 6% to 15,4 trillion and shows how difficult it is to compete for bulk prizes.

The Bitcoin network regulates mining every 2016 blocks or every 14 days. Adjusting the mining difficulty ensures that the average interval between two blocks remains at 10 minutes.

Some market analysts agree that before halving Bitcoin, miners rushed to extract the most blocks, making the most of profitability.

Kevin Zhang, director of strategies blockchain di Greenidge GenerationSaid:

“We believe that as the halving approaches, the miners in China they made a quick run to the mines, even with old generation machines, to get most of the last days of the highest rewards ".

The vice president of Poole's Alejandro De La Torre stressed that

 "This is why we have seen those very high hash rate values."

The first two mining pools F2Pool and Poolin monitored some data on the profitability of the miners at the current price and difficulty of BTC.

Older generation miners will not be able to achieve high returns at electricity rates above $ 0,05 per kilowatt hour.

In his report released in May, Poolin said he still sees some hope for miners in the near future.

"While we predict that most of these miners will be ousted after the BVitcoin halving, some are likely to have cheap electricity to survive in the near future."

Grayscale Investments acquires 33% of all Bitcoin mined in the last quarter

According to research published on Reddit, Grayscale Investments has purchased 33% of all Bitcoins mined in the past three months.

The company's Bitcoin trust fund added nearly 60.762 BTC in the period between February 7 and May 17. It's like buying over 600 BTC every day for three months.

"For a good measure, 60k bitcoins in the past 100 days are about 33-34% of all the bitcoins recently minted in that period, give or take."

Grayscale Investments is popular for offering institutional grade crypto investment products. To date, it manages a total of $ 3,7 billion in managed digital assets.

 

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Jacqueline Facconti

Graduated in Business Economics and Strategy, Management & Control with 110 cum laude from the University of Pisa, editor and editorial collaborator for various blogs and Economic and Business sites

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