Every two weeks, bitcoin resets regarding how difficult it is for miners to mine. The bitcoin currency code automatically made it about 7.3% more challenging to solve a block. It is just getting less profitable and harder to mine for bitcoin.
Historically, this increase in toughness in mining is on the larger side, but it is not surprising nor alarming. But it marks the first significant increase since few miners in China are finding new homes somewhere else.
It might not be quite as lucrative to mine bitcoin as it was earlier before the self-corrected algorithm. Miners are still making way more money now than they were making before China’s cryptocurrency crackdown in the month of May.
“Hashrate levels are still down 42.1% from the peak in May 2021 when the China exodus happened,” said Jason Deane, an analyst at crypto advisory firm Quantum Economics.
That hash rate decline means those plugged into the network of bitcoin presently are making bank.
“We have seen the bottom of the hash rate decline, and it is nothing but up from here,” said Mike Colyer, CEO of digital currency company Foundry, which helped bring more than $300 million of mining equipment into North America.
“This next adjustment reflects the fact that miners are building out capacity and plugging in new machines. There is an enormous number of machines coming out of China that need to find new homes,” continued Colyer.