How The Bitcoin Difficulty Adjustment Has Boosted Miners’ Bottom Line | Bitcoinist.com

Bitcoinist

Data shows the recent large negative Bitcoin mining difficulty adjustment has provided a significant boost to the miners’ revenues.

Bitcoin Miners Observe Big Boost In Revenues After Difficulty Decrease

As per the latest weekly report from Arcane Research, the BTC miner revenues have seen a 15% growth over the last seven days alone.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

A relevant indicator here is the “mining hashrate,” which measures the total amount of computing power connected to the network.

How To Get Free Crypto  

This metric can be thought of as a representation of the competition present among the miners. Thus, rising values of the metric imply an increasing competition between the individual mining machines.

There is a feature of the BTC blockhain that the “block production rate” (that is, the rate of hashing new blocks) has to aim for a constant value. However, whenever the hashrate changes, so does the ability of miners to produce blocks.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

For example, a rise in the hashrate means more rigs are present on the network now, and so the block production rate gets faster. To counteract this, the Bitcoin chain increases what’s known as the “mining difficulty.”

Related Reading | Glassnode: What Bitcoin Long-Term Holder Cost Basis Tells Us About Bear Market Length

What is the best crypto casino in July 2022? Read our comprehensive comparison! We made deposits, played and reviewed 80+ crypto casinos to choose the best one.

After such an adjustment takes place, the miners find it harder to hash transactions and so their rate is slowed down to the required level.

Coinbase Banner  

Now, here is a chart that shows the trend in the BTC hashrate over the past year:

Looks like the hashrate has gone down recently | Source: Arcane Research's The Weekly Update - Week 29, 2022

As you can see in the above graph, the Bitcoin hashrate has now fallen 15% from the all-time high set back in June.

A consequence of this decline has been that the mining difficulty has faced three consecutive adjustments, the latest of which has been the largest such adjustment in over a year.

Related Reading | Alternative Media Attacks Bitcoin: A Response To “Bitcoin Cannot Free Palestine”

Thanks to the lowered difficulty, BTC miners have observed an uplift in their revenues. Just last week, the daily miner revenues had fallen below $18 million, the lowest value since November 2020.

The below table shows how the various BTC miner-related metrics have changed during the past week.

The fees per day seems to have fallen by almost 4% during this period | Source: Arcane Research's The Weekly Update - Week 29, 2022

From the table, it’s apparent that miner revenues have jumped by more than 15% over the last seven days as they stand at $20 million per day currently.

FreeBitcoin Banner  

BTC Price

At the time of writing, Bitcoin’s price floats around $21.4k, down 10% in the last week.

The value of the crypto has declined during the last few days | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Arcane Research

Go to Source
Author: Hououin Kyouma


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.