Between a debilitating crypto winter and rising energy costs, bitcoin miners were caught between a rock and a hard place for most of 2022. But Bitcoin’s hash rate – the amount of computing power devoted to mining the cryptocurrency – is near its peak rates. Back of the envelope math shows that the amount of computing power devoted to mining bitcoin has surged by roughly … Continue reading Notes 01/03: Bitcoin Mining Consolidation
One of the constituencies affected by the slump in bitcoin prices is its mining community. A decline in bitcoin’s price makes the cryptocurrency less profitable to mine because revenues fall. Bitcoin mining is a capital-intensive business. It requires significant investments in real estate, mining rigs, electricity, and, in some instances, energy sources. The main source of revenues for miners, after making these investments, are transaction … Continue reading How Are Bitcoin Miners Handling The Crypto Winter?
Mining revenue from Bitcoin continued to fall, declining by 21.6% in May, even as Ethereum’s ether recovered from a mishap at the beginning of the month to become a more profitable proposition for miners. Revenue from bitcoin mining operations has been in a free fall since last October. The development is not surprising considering that the difficulty of solving bitcoin’s mining puzzle has climbed since … Continue reading Bitcoin Mining Revenue Fell By Double Digits In May As Ethereum’s Ether Became More Profitable
The difficulty level for bitcoin’s mining algorithm, which climbed over the last year, fell by 15% yesterday, recording its second-steepest drop ever. Difficulty level refers to the difficulty of the cryptographic problems required to be solved by systems within bitcoin’s network to earn the cryptocurrency. It is adjusted every 2016 blocks or approximately after every two weeks, depending on the rate of production. The difficulty … Continue reading Bitcoin Mining Difficulty Level Records Second-Steepest Drop. Will Industry Consolidate?
Despite the precipitous decline in it’s price, bitcoin’s hashrate (or the amount of computing power deployed to its network) has skyrocketed. Approximately a year ago, bitcoin had 6.018 exahash of computing power dedicated to its network. As of yesterday, bitcoin’s hashrate was equal to 38.42 exahashes. (1 hash in bitcoin is equal to one round of SHA-256, the cryptocurrency’s mining algorithm and 1 exahash is … Continue reading Bitcoin’s Hashrate Has Skyrocketed In The Last Year. Why?