Now it’s more difficult to exploit Bitcoin than ever
Bitcoin mining has become more competitive than ever.
The difficulty of Bitcoin mining, the measure of how difficult it is to earn mining rewards in the world’s largest cryptocurrency by market capitalization, has reached a new record of more than 7.93 billion. That’s a seven percent increase from the record of $ 7.45 trillion during the recent two-week adjustment cycle, which was the highest since October 2018.
Bitcoin is designed to adjust its mining difficulty every 2,016 blocks (approximately 14 days), depending on the amount of computing power implemented in the network. This is done to ensure that the block production interval in the next period will remain constant around every 10 minutes. When there are fewer machines competing to solve mathematical problems and get the next bitcoin payment just created, the difficulty decreases; When there are more computers in the game, it rises.
At this moment the machines are buzzing furiously. Bitcoin miners around the world have calculated an average of 56.77 quintillion hashes per second (EH / s) over the past 14 days to compete for mining rewards in the world’s first block chain, according to data from the mining group BTC.com.
The BTC.com data also indicates that the average bitcoin mining hash rate in the last 24 hours in three-day periods was 59.58 EH / s and 59.70 EH / s, respectively, even higher than the average of 56.77 EH / s from May 15 to June 27, or any data of 14 days in the history of the network.
Similarly, the blockchain.info data also shows that bitcoin’s computing power was about 66 EH / s as of June 22, surpassing last year’s record of 61.86 EH / s tracked by the site, and it has more than doubled since December 2018 when the hash rate was reduced to only 31 EH / s in the middle of the bitcoin price drop.
Assuming that all that additional computing power comes from more used equipment, such as the AntMiner S9, which performs calculations at an average rate of 14 tera hashes per second (TH / s), which suggests that more than 2 million units of equipment Miners may have been turned on in recent months. (1 EH / s equals 1 million TH / s).
The increase in capacity is also in line with the increase in bitcoin prices in the first half of 2019, which caused the price of second-hand mining equipment to double in China, and also increased the demand for new machines
BTC.com further estimates that the bitcoin mining difficulty will increase another seven percent at the beginning of the next adjustment cycle, which would be the first time that the bitcoin mining difficulty exceeds the eight billion threshold.
Delay in the connection
This computer interest comes at a time when mining farms in China, especially in the mountainous southwest of the country, have been gradually incorporating equipment as the rainy summer approaches.
According to a report published by the blockchain research firm Coinshare, earlier this month, 50 percent of bitcoin’s global computing power was in the Chinese province of Sichuan.
However, it is important to note that this year, the arrival of the rainy season in southwest China has been delayed by almost a month compared to previous years. As a result, some local mining farms were only running less than half of their total capacity in the last month.
Xun Zheng, CEO of the operator of the Chengdu-based mining farm Hashage, which owns several facilities in the southwestern provinces of China, said it had not rained in the area for more than 20 days since the beginning of May, which was “unusual”. “
He also reported the following: “In recent years, it usually begins to rain continuously throughout the month of May, so hydroelectric plants would normally have sufficient water resources at the beginning of June.”
As a result, at the beginning of June his firm only operated at 40 percent of its capacity; It can house more than 200,000 ASIC miners. But as the rain has gradually arrived in the last two weeks, the proportion has risen to more than 60 percent.
Mining farms in China previously estimated that the total hash rate this year during the peak of the rainy season around August could break the threshold of 70EH / s. That means that another 300,000 units of mining machines could be activated even more, assuming they are all AntMiner S9s or similar models.
Those waiting to be fired will also include new capital in the sector, such as Fundamental Labs, a blockchain fund that has invested $ 44 million in first-line mining equipment, which will be activated in June.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.