Thursday, December 8, 2022

Bitcoin Miners Headed For A Shutdown As Mining Difficulty Surges 4.89%

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According to data from btc.com, a Bitcoin mining performance tracking firm, Bitcoin mining difficulty has risen significantly. As noted on Twitter, by popular cryptocurrency reporter Wu blockchain, the Bitcoin mining difficulty has recorded an increase of nearly 5%.

Per his tweet, 

According to BTCcom, the current Bitcoin mining difficulty reached 31.25 T, an increase of 4.89% and a record high.” 

Bitcoin Mining Difficulty Hits New Levels

The new development might spell doom for Bitcoin miners. As it also appears that with Bitcoin’s price taking a downward turn, Bitcoin miners may be heading for a storm.

“But as Bitcoin falls to $30,000, more miners will be approaching the shutdown price.” Wu added.

The price of Bitcoin continues to drop, Bitcoin mining companies stand to record significant losses. An observer noted this in his tweet, which was a response to the surge in mining difficulty, saying : 

“Bitcoin mining companies will start getting into serious trouble if BTC goes and stays below 30k for a long time. Some have purchased mining hardware (to be delivered in 2022) at $100 per TH/s or more.”

What to expect next

On April 28th, the Bitcoin network hash rate tallied a new ATH of 258 EH/s. By the end of the month, it eased down 220 EH/s without any striking negative impact on the BTC network difficulty. Meanwhile, the price of BTC has gone down by 23% over the last fourteen days.

However, the major concern is not the BTC decreasing below $30,000 on trading levels, but how long it will stay in decline. 

On the brighter side, the network is well placed to secure a better all-time high, considering the price and overall security.  Fortunately, the absence of short-term holders also gives room for on-chain indicators to recommend bullish momentum. 

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.



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