A while ago, in China, it was Controversial measures in exchange for cryptocurrencies instead. China banned mining in a short time Bitcoin (BTC) With all its consequences. For example, hash rate, time taken to create a file block Lee, and miners in China were asked to pack their things.
The vacuum created by this had a huge impact on the remaining miners. As the hash rate fell, the profits of the remaining miners also declined. The total power of the mining network has decreased by more than 50%. Ultimately, this will lead to mining difficulty Amended.
high profits
In the meantime, Grid was slowly recovering to the old levels. According to analysis firm Glassnode, miners’ earnings have risen about 57% since their lowest levels in a while.
# bitcoin Mining revenue per hash is up 57%, back to mid-2020 levels as the Great Migration continues.
900 typical BTC dollars It is mined daily between ~62.5% of the peak hash strength seen in May
See more analysis in The Week On-chainhttps://t.co/jj6CzAnKRV pic.twitter.com/68xHXwcraK
– glassnode (glassnode) August 17, 2021
The strength of the mining network is also gradually returning to the levels it was before the bad developments in China. At its peak in May of this year, the network was mining around 180 EH/s. This is now 112.5 EH/s.
Difficulty adjustment
The main reason for this recovery is Modification difficulty. The difficulty determines how difficult it is for the miners block for me. By reducing this difficulty, it is easier for miners to mine bitcoins.
As a result, she became attractive again to me. As a result, miners moved from China to other countries such as the United States and Mongolia. The difficulty adjustment was so effective that miners’ earnings increased by 57%.
In the end, when it becomes too easy for me, the difficulty increases again. This also happened in the meantime. Over the past week, the difficulty is slowly increasing Put.
The actions in China have had dire consequences for the Bitcoin network, and this is very clear. However, the extent to which Grid was able to recover in a relatively short period of time is remarkable. If even one of the world’s largest economies can’t slash Bitcoin, who or what can? For this reason, many analysts call it Bitcoin as well indestructible
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