The Bitcoin mining difficulty might change again soon, but the latest change made it easier to find Bitcoin. The price of graphics processing units (GPUs) has dropped, allowing retail miners to acquire additional equipment.
Over the last 30 days, the Bitcoin mining hash rate has dropped by over 26%. Miners have had to deal with the effects of the falling prices in all the fields.
Data from Coinwarz indicates that the Bitcoin (BTC) hash rate was 292.02 EH/s on June 8th. However, that figure fell to 178.44 EH/s the following day before recovering to 241.07 EH/s.
Hash rate, also known as computing power, is necessary for mining coins and processing transactions on the Bitcoin network. That measure usually increases when a growing number of devices work to secure the blockchain.
Bitcoin has been trading primarily in the USD 20,000 range over the last month. However, its price briefly dropped to a 1.5-year low below USD 18,000 on June 18th.
Miners Find a Breakthrough with the Latest Difficulty Adjustment
Even though the value of BTC prices has hovered around USD 20,000, there was a breakthrough for miners in the latest difficulty adjustment.
The difficulty level might change again soon, but the latest change made it easier to find new Bitcoin blocks by 3.76%. The Difficulty Adjustment Algorithm (DAA) may suffer a reduction by another 0.13% after 1,600 blocks.
There has been great success with mining revenues due to the record crash of the market. According to Blockchain.com, Bitcoin mining revenue has dropped by over 79% over the last nine months. On July 4th, it reached a low of USD 15 million.
That has led mining firms like Compass Mining to reduce their staff by 15% and even reduce the earnings of their top executives.
Marathon Digital and Riot Blockchain, among others, have had to sell their Bitcoin holdings due to the rising operational costs.
The Constant Sales of Miners Put Further Pressure on Bitcoin Prices
A recent report from JPMorgan indicates that the constant sales of these miners may put further pressure on the Bitcoin price in the third quarter.
The value of graphics processing units (GPUs) has fallen alongside Bitcoin. Available information has allowed knowing that their price dropped by 15% in May.
This price drop has allowed retail miners to acquire additional devices. In addition to the decrease in hash rate, they now can mine BTC.
Bitcoin has become increasingly relevant in the world economy, which miners understand. Many analysts believe the cryptocurrency is an excellent long-term store of value since its value has historically reached above previous all-time highs.
BTC is trading at around USD 20,000 and has accumulated a 10% loss over the last 24 hours. While its daily trading volume is over USD 30.50 billion, its market capitalization is about USD 300 billion, according to CoinGecko.
By Alexander Salazar
