After consecutive periods of low difficulty on the Bitcoin network, there was a strong adjustment on Tuesday. The increase in difficulty was such that something similar had not been seen since January 2018.
The increase in the difficulty experienced in mining the main cryptomat was 14.95%. This closes a new cycle in this important aspect of Bitcoin mining.
The current level of difficulty will be maintained for the next two weeks. Thus, this index is very close to the one that Bitcoin had before Halving. By the end of June, there will be a new adjustment
The Hash Rate is directly related to the difficulty of the Bitcoin network
After the Halving, last May 11, which cut the miners‘ rewards in half, the expected drop in the Hash Rate took place. It should be noted that, as the reward was cut by 50% and the price of cryptomint remained almost unchanged, the old machines ceased to be productive.
For example, a 14T S9 generated before May 11, a monthly average of $60 equivalent in Bitcoin. After that date, the income it produces is equivalent to about $30. If you add to that the cost of electricity and derived operating costs of mining, the equipment loses profitability.
In that sense, after the cutback, the obsolete miners began the process of capitulation. Thus the Hash Rate dropped and, as a consequence, the difficulty of the Bitcoin network. That is the reason for consecutive downward adjustments.
On the contrary, with the arrival of the rains in Sichuan, which means low electricity costs, the process of increasing the hash began. Another fundamental factor is the reactivation of the trade in the latest generation of machines.
After the relaxation of the quarantine measures, companies like Bitmain, began to dispatch freights with S19 series equipment. The first shipment batch was almost immediately exhausted and the second could follow the same path. This has led to an increase in the hash rate and consequently, the upward adjustment of the Bitcoin network’s difficulty.
The difficulty of the Bitcoin Blockchain Network has increased to levels not seen since January 2018.
Bitcoin Hashrate Recovers to Pre-Halving Levels
Other measurements that show a positive picture
As is known, China maintains a broad leadership in terms of total hash power. However, it is on the decline in that country. Now, the peak is in the United States.
Recently, the firm TokenInsight published data about the growth, by more than 78%, of the mining business in the American country. This, of course, has an impact on the increase of both the Hash Rate and the difficulty of the Bitcoin network.
Another important fact is the increase of the holding company. According to Forbes, there is an increase in Bitcoin accumulators in the long term. The portal assures that the number of accounts that accumulate Bitcoin Code is the largest since 2015 and 2016.
One of the monumental holdings is the investment firm Grayscale, which holds $3 billion in Bitcoin. In addition, Wall Street investors would also be acquiring the main crypt currency „en masse,“ Forbes said in another article.
„As the world faces increased geopolitical risks, global uncertainty and economic recession, institutional investors are showing a willingness to take risks in investing in a relatively new asset that could be a long-term hedge against inflation,“ the article said.