Bitcoin’s price has displayed a stable price action over the past 24 hours with a trading volume of $31.389 billion. Reportedly, 2nd time, President Donald Trump promised to Make America Great Again “MAGA” by making the nation a Bitcoin superpower and the crypto capital of the world. Following the U.S. election, the crypto-verse expected a major price surge.
However, the Bitcoin mining difficulty is on a constant rise and is heading toward achieving a new high anytime soon. Notably, Hashprice which measures the daily income of a miner as per petahash per second, is now around $48/PH/s. This has resulted in most of the miners hardly breaking above their expenses or operating under loss.
Hashrate Crosses the 800 EH/s Mark!
The hash rate is referred to as a measurement of the computational power of a blockchain network, group, institute, or individual. Furthermore, it is used to determine the mining difficulty of a blockchain network, in this case, Bitcoin.
After experiencing a freefall this month, the Bitcoin Hashrate is back above the 800 level. This highlights the increasing difficulty in the BTC mining process. Bitcoin mining is a vital mechanism that helps the blockchain maintain the stability and security of the network. It ensures the consistency of mining and integrity.
4th Bitcoin Halving Cuts Miner Rewards!
With the completion of the 4th Bitcoin halving in April 2024, the rewards have now been reduced from 6.25 BTC to 3.125 BTC. The prime focus of the Bitcoin halving event is to control the Bitcoin issuance and maintain scarcity in the market.
While the previous halvings acted as a catalyst for a new bull cycle, this halving was recorded during a bear market, when the transaction fees were lingering around its historic lows. This resulted in the miner’s rewards just making around 1.12%.
New Methods To Overcome Increased Mining Costs!
Many institutes/miners are coming up with creative solutions. Some are listed below:
- Europe-based bitcoin company “Braiins” has come up with a unique approach where bitcoin mining machines are “re-purposed” to warm homes and apartments.
- Another prime example is El Salvador, also the first nation to adopt Bitcoin as a legal tender, which has till-date mined 474 Bitcoins, using geothermal energy from the Tecapa volcano.
- Bilal Bin Saqib, Chief Executive Officer (CEO) of the Pakistan Crypto Council has proposed to use its nation’s excess generated energy for Bitcoin mining.
Conclusion:
Amid increased uncertainty, rising hashrate, and new global players entering the game, the Bitcoin mining industry is on the verge of experiencing a significant transition in the coming time.
Rising Hashrate and mining difficulty could act as a major concern for the survival of micro-level miners. However, looking on the positive side, this could result in the crypto-mining industry witnessing newer innovations and adoptions for an entity, institution, or individual to survive.
Also Read: Bitcoin Nears $86,000 After FOMC Meeting and Fed Rate Decision
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