What the Next Level of Bitcoin Mining Difficulty Will Bring
Bitcoin’s mining difficulty is set to increase from 47.89 trillion hashes to 48.53 hashes tomorrow, according to data from CoinWarz, due to the process of using powerful computers to verify transactions on the blockchain. The increase in demand for advanced technology and overall power to produce the same amount of Bitcoin could impact profit margins for smaller operators, with some struggling recently to turn a profit. However, the price of Bitcoin is rising, leading to an easier path forward for miners. Additionally, more miners are turning to renewable energy sources to keep the network secure, as criticism of Bitcoin mining’s environmental impact has grown. CleanSpark has said the increase in mining difficulty is likely to lead to consolidation in the sector, with smaller firms likely to be bought out by larger ones or forced to shut their doors. While mining difficulty is set to continue increasing by 3-7% per month, a significant increase is not expected just yet, according to Tim Rainey of Greenidge Generation Holdings, due to the recent rise in Bitcoin’s price.
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