According to BTC.com data, Bitcoin mining difficulty increased by 3.58% to 92.67 T (Trillion), setting a new high again. This shows that despite the continued decline in mining profits and the stagnation of Bitcoin’s rise, various miners are still mining. He is fully committed to continue mining, betting that Bitcoin will rebound sharply in the fourth quarter and thus usher in a "big harvest."
Mining difficulty basically reflects the level of competition among miners. The more intense the competition, the higher the difficulty. It also reflects the expectations of miners for the price direction of Bitcoin.
Since the block reward "halving" in April this year, the price of Bitcoin has fallen by about 10%, and as mining output and revenue opportunities have plummeted, many miners' profit margins have been significantly reduced. Christopher Bendiksen, director of Bitcoin research at CoinShares, said:
Following the halving event, Bitcoin mining difficulty hit an all-time high, making the outlook for many miners extremely grim, especially those with higher costs.
Christopher Bendiksen pointed out that if this trend continues, "there will be some miners who will struggle to maintain a balanced cash flow, let alone a profit."
According to the latest report from investment bank Jefferies, miners’ average daily revenue per Exahash dropped by 11.8% month-on-month in August, and analysts expect that as the price of Bitcoin remains below $60,000 and the computing power of the entire network continues to rise, , miners may continue to face challenges in September.
Even as economics worsened, miners' operational efficiency improved. Jefferies gave an example in the report that Marathon Digital’s mining time reached 88% last month, significantly higher than the 75% in the same period last year.
In past bull market cycles, Bitcoin prices tended to fall after the halving, then consolidate for several months before rebounding and hitting new record highs. According to Bobby Zagotta, CEO of cryptocurrency exchange Bitstamp USA, many in the industry are expecting Bitcoin to usher in a wave of gains in the fourth quarter of this year. He added:
It's clear that many miners are betting that Bitcoin's price will rise significantly, but if this expectation fails to materialize, some miners may face difficulties.
〈Betting on Bitcoin will usher in a “big market”! Competition among miners is fierce and mining difficulty reaches new heights> This article was first published on "Block Guest".
