The difficulty in mining Bitcoin has increased for a second time after China declared a crackdown on mining operations and also following the dip in mid-July as the mining ecosystem continues to turn back online.
According to the most recent data from BTC.com, Bitcoin mining difficulty has been increasing steadily since June 17, 2021.
The Bitcoin ecosystem saw a 13.77% spike in mining difficulty in two consecutive jumps, surpassing 15 terahash (T) for the first time since the second week of June, as Chinese miners slowly settle down in crypto-friendly locations.
The next adjustment is set to begin on August 27, with the difficulty predicted to increase to 15.63 terahash.
Bitcoin’s mining difficulty peaked at 25 terahash before China’s ban on local miners. The rapid drop in Chinese miners had lowered the level of competition for confirming blocks. Existing miners on the network were able to increase their revenues as a result of this.
According to Statista, China’s contribution to Bitcoin mining has decreased to almost 46%, while the United States has picked up the slack, holding nearly 17% of the worldwide mining hashrate.
Quantum Economics crypto specialist Jason Deane stated in a CNBC report that the network’s current difficulty adjustment mechanism had made mining Bitcoin 7.3 percent less economical.
Mike Colyer, CEO of a New York-based digital currency firm, concluded the conversation by saying:
“There is an enormous amount of machines coming out of China that need to find new homes.”
Colyer also expects that the upcoming generation of mining rigs will be more efficient, doubling hash power for the same amount of electricity.
China’s move against Bitcoin mining was attributed to energy concerns, as mining operations consume a lot of electricity.
Following the crackdown, Canada, Kazakhstan, Russia, and the United States emerged as the most viable destinations for Bitcoin miners looking to relocate.
