The drop in profitability, as well as the notable increase in difficulty, were the main topics during this week.
Since the beginning of 2023, mining has emerged from the lows that the market experienced last year. An increase in profitability led to a growing number of miners connecting to the network to take advantage of the rising price of Bitcoin.
However, the increased hashing power of the network led to a flurry of upward adjustments to the difficulty. The latter translates into a drop in profitability for miners. Although the price of the pioneer coin is above $30,000, it is not enough to increase the income of the miners.
Hash Power and Difficulty Hit New Record in June
The increase in the hashing power of Bitcoin is notable. In June, most of the network settings experienced difficulty records due to the rapid increase in new miner connections to the network.
According to data from BTC.com, the network difficulty reached its recent historical peak on June 14, remaining at 52.35 T. In regards to computing power, which is the sum of the computing strength of the total connected miners to the network, it exceeds 360 EH/s.
Said increases came along with a considerable rise in the price of Bitcoin. However, if the price of the coin stagnates, a drop in hash power and difficulty is likely to take place.
Bitcoin Cash Becomes More Attractive Due to Increased Profitability
During the last two weeks, miners have been moving towards Bitcoin Cash mining, thanks to its increased profitability, according to specialized media.
This is due to the increase in the price of the currency, which experiences +182% in that approximate period of one month. This allows the profitability of the miners in it to be considerably higher. By comparison, the Bitcoin network experiences a reverse process, where it is not as profitable to operate on it.
As a consequence, people seem to prefer to dedicate themselves to mining BCH and get better results. This is a valid option for those miners tormented by the increase in the difficulty of the Bitcoin network, which has been hitting continuous all-time highs so far this year.
Hive Mining Revenues Are -50% Off Their Peak
As a result of increasing network difficulty and declining performance, Bitcoin mining companies are feeling increasing pressure. One of them is the Canadian Hive Blockchain Technologies Limited, a company that would have experienced a drop in its bitcoin production of -50%, as compared to its historical peak. According to media networks, the company suffered a net loss equivalent to $236 million dollars.
The drop in half of its revenue occurred during the 2023 fiscal year of this pioneering company on the stock market. The pullback is “mainly due to the fall in the price of Bitcoin and the increase in the difficulty of Ethereum and Bitcoin,” the firm explains in its report.
MicroBT to Manufacture ASIC Equipment in the United States
As a result of a partnership with Riot Platforms, Bitcoin mining equipment maker MicroBT will produce ASICs in the United States. Thus, the main mining company in the North American country makes it possible for the Chinese company, one of the largest in the world, to expand beyond its borders.
In a statement, cited by Bitcoin Magazine, the deal was reported and the opportunity was taken to allay concerns. According to digital mining critics, this is a highly energy-demanding process. However, the companies dismissed those allegations.
By Audy Castaneda
