Key Points: Bitcoin mining difficulty has increased by 3.5%, causing competition and challenges for miners.
4 The #bitcoin depreciation in March halved #mining profits, causing prices to fall 10% and putting pressure on miners' profitability. Competition for
has increased, and as a result, the complexity of bitcoin mining has reached new heights, making it harder for companies to mine the #cryptocurrency . According to
CoinWarz, the bitcoin mining difficulty indicator, which determines how hard miners should strive to obtain the cryptocurrency, rose 3.5 percent on Wednesday and reached all-time highs. The cryptocurrency
has lost 4% of its value since bitcoin halved in 10 months - regular code adjustments halved the reward for mining. This event has cut into miners' profits, and many of them are barely keeping afloat. The depreciation of the ruble is reducing inflation and controlling supply, but miners' incomes are also falling, putting additional pressure on an already fragile industry. According to a report
Bloomberg, Christopher Bendixen, head of bitcoin research at #CoinShares , said the growing complexity is making it harder for miners to operate.
"Amid a halving earlier this year due to record high levels of complexity, the outlook for many miners has become very challenging, especially for those at the top of the cost curve, Bendixen said. He warned that some miners will find it difficult to maintain positive cash flows.
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9 In May, the BITCOIN HASHREIT, which pools computing power to provide network SECURITY, reached historic highs. Traditionally, the price of bitcoin drops by half and rises again after a few months. A halving of the price is not out of the question, but increased complexity is a new aspect that mining has to face.
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