Bitcoin mining difficulty saw a significant drop of 27.9% on July 3. Miner’s revenue has surged by 50%. Daily mining revenue has increased from $20.7 million on July 2 to $31.9 million on July 6.
As predicted earlier bitcoin difficulty was re-adjusted on July 3, 2021, which shows a record drop of 27%. Half of the hashing power went offline due to China’s crackdown on bitcoin mining facilities. Most of the Chinese miners are relocating and the time of their coming back online is unknown. Due to these circumstances, the remaining miners have no competition and are earning a lot of fortune.
Bitcoin mining is in a unique state of flux which is due to very interesting dynamics. According to the newsletter “The week On-chain” from analytics firm Glassnode.
“We have a very interesting dynamic where approximately 50% of the hash power is currently offline and incurring a great number of costs due to logistics and just simply not hashing, having hardware that’s not currently working, and the other 50% has essentially seen half their competition drop off the network”.
Founder and Chief Investment Officer(CIO) of bytetree Charlie morris tweeted about this and expressed his hope that transaction will start to pick up.
On May 29 mining difficulty was dropped by 16%, led by a drop of 5% on June 13 and followed by a significant drop of 27%. Bitcoin mining is more profitable and easier due to these consecutive drops of mining difficulty. If offline hashing power doesn’t come online then bitcoin mining difficulty can drop further.
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