Bitcoin mining is now a fact of our lives. Investors from all over the world are buying equipment for Bitcoin mining and earning money by trying to decrypt the Bitcoin blockchain. However, there is a remarkable situation in this sector at the moment. Bitcoin mining difficulty (hashrate) has dropped for the second time since the beginning of March. Well what does it mean? Why are Bitcoin mining difficulties falling? So why has it become easier to make money from mining?
Bitcoin mining difficulty has been rising steadily since November 2021. In other words, the probability of making money from the devices used decreased. However, this difficulty rate first fell at the beginning of March. Now this decline has shown itself once again. The hashrate rate decreased by 35 per thousand and was recorded as 216 EH/s (exahash/second). The change since the beginning of March has reached the level of 1.5 percent. In other words, the probability of a miner digging Bitcoin has increased somewhat.
The reason for Bitcoin mining difficulty to drop: Energy crisis
Comments on Bitcoin hashrate decline were made by Whitt Gibbs, founder and CEO of mining company Compass Mining. Mentioning that no clear reason could be presented for the decline, Gibbs said that the reason for this decline could be the energy crisis. According to the CEO of Compass Mining, devices whose profitability has decreased due to rising energy costs are being unplugged. This leads to a decrease in the number of devices connected to the mining network. As such, keeping the desired 10-minute time constant for the decryption of encrypted blocks is achieved by lowering the difficulty level.
The change graph of mining difficulty is as follows:
One of the effects of the coronavirus pandemic was the disruption of the energy sector. In this process, energy costs increased in general. The Russia-Ukraine war also added to this situation. Russia, one of the world’s largest energy suppliers, is offended by the whole world at the point of oil with natural gas, which is also used in electricity production. The Arabian peninsula, on the other hand, does not care much about the west.
There will be those of you who remember; One of the issues we talked about in the past months was Kazakhstan. The country, which came to the center of mining as a result of China’s prohibitions, caused confusion due to price increases, and the miners were directly affected by this situation. All these developments mean that the miners are unplugging the devices. As a natural result of this, the hashrate fell…
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