Bitcoin mining difficulty, a measure of how difficult it is to mine new bitcoins, has recently decreased significantly by 6%. This significant decrease indicates that miners will need fewer computing resources to mine new bitcoins.This has a broad impact on the entire mining sector.
According to 5/10, #bitcoin #mining complexity decreased by 6%, from 88.1 trillion hashes to 83.15 trillion hashes. This is the largest percentage decrease since 2021/2027, down 28% to 14.36 trillion hashes. The Mining Complexity Index is automatically adjusted according to changes in the aggregate computing power of the Bitcoin network.
1- One of the most notable results of the decline in mining complexity is the dramatic increase in the share of low-cost miners in the market. Bernstein's report emphasizes that lower-maintenance miners have rapidly expanded their presence after the events surrounding Bitcoin's halving.
Last month, Bitcoin halved for the fourth time. This event occurred about 4 times in 1 year, causing the reward miners receive for processing new blocks on the network to halve from 6.25BTC to 3.125BTC per block.
While keeping the network running smoothly by creating new coins and processing transactions, bitcoin miners now face the more difficult task of maintaining profitability. Due to declining rewards and the increased difficulty of mining, many miners have scaled back their operations.
Mining giants such as Riot Platforms (RIOT) and CleanSpark (CLSK) have led the way as the complexity of mining has decreased. These companies are known for their smooth operations and stable financial health, and they have seen a dramatic increase in market share as they have to contend with more expensive competitors.
Bernstein's analysis shows that these companies can capitalize on the changing dynamics of the bitcoin mining sector.
Despite the recent problems, Bernstein is optimistic about the future of bitcoin mining. The company predicts that the bitcoin price will remain stable in the short term, but is expected to rise sharply once spot exchange traded funds (ETFs) attract more attention from institutional investors.
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