Mining Difficulty for Bitcoin is constantly on the Rise since July
After a two-month upset, the mining firms for Bitcoin have started recovering their old hashrates produced through Bitcoin mining. It was in early July when the Bitcoin mining rate started recovering and a rise was recorded in hashrate since then.
The firms that had to relocate to different parts of the world after getting pushed out of China have finally settled and are operating at high rates. This is the reason why the hashrate for Bitcoin mining is constantly growing higher. As demand for Bitcoin continues to rise throughout the world, the Bitcoin miners have started increasing their mining capacity.
Due to the reasons mentioned above, the mining difficulty for Bitcoin has been on a constant rise and it keeps growing higher. The “mining difficulty” means that as there are too many miners out there, therefore, there is a lot of competition for solving complex equations in order to acquire Bitcoin.
With more and more firms increasing their mining capacity, the competition is constantly on the rise, which is increasing the mining difficulty in the Bitcoin sector.
It was on Tuesday, September 21, when the hashrates for mining Bitcoin were shared by the Bitcoin network. The network went ahead posting a report where it updated the Bitcoin mining community that another adjustment for mining difficulty was made.
The network reported that a 3.2% rise in the mining difficulty had been recorded, bringing the mining difficulty rate to 19 trillion. This information has been acknowledged and confirmed by BTC.com, a blockchain explorer.
According to BTC.com, the Bitcoin mining rate had suffered a tremendous plunge starting the month of May and leading all the way till the end of June. However, starting July, the hashrate started recovering, as the Bitcoin mining firms kicked out of China relocated to other friendly crypto-mining countries.
There, the mining firms added even more mining rigs and opened up more mining capacities for Bitcoin. This has eventually increased the mining difficulty rate for Bitcoin since July of 2021. The data shows that since July of 2021, the mining difficulty rate has been adjustment by the Bitcoin network for the fifth time.
As per data from BTC.com, the mining rate has increased by 31% since the beginning of July. Until the end of June 2021, the mining difficulty for Bitcoin had plunged all the way down to 13.7 trillion.
The positive adjustments that the network has reported were recorded following several drops that started occurring in May of 2021. The data shows that from May 2021 until the end of June 2021, four consecutive drops were recorded for mining difficulty.
However, the mining rate has now started recovering, which is a positive sign in terms of mining rate but negative for miners with small setups.
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Text source: Coinfrog
