Bitcoin is now harder to mine than ever before – so is it still worth it? null
Mining bitcoin now demands more computational power than ever before, with mining difficulty reaching a new high of 17.35 trillion, up 9.89% from the previous record posted on July 1.
The new bitcoin mining difficulty (a metric that describes how challenging it is to compete for cryptocurrency rewards on the bitcoin blockchain) is a reflection of the increase in computing power dedicated to mining bitcoin in recent weeks.
Altered automatically after every 2016 blocks processed – which occurs roughly every two weeks – bitcoin mining difficulty fluctuates in line with the level of competition on the network. If competition among miners is high during the two-week period, mining bitcoin will become more computationally complex for the next 2016-block cycle, as per the network’s design.
The new record was reached two months after the third bitcoin halving took place, which cut the reward for successfully validating a new block from 12.5 to 6.25 bitcoin – or from roughly $115,000 to $57,500 by today’s rate.
By cutting the revenue brought in by mining operations in half, the landmark event was expected to weed out smaller miners, judged unable to shoulder the new cost of operation. However, the new record mining difficulty suggests investment in high-end mining equipment has only increased since the halving event.
Bitcoin mining
Bitcoin is the world’s first cryptocurrency and the largest today by market capitalization, followed by Ethereum and XRP. The number of bitcoin currently in existence sits at 18 million, with the cap (the role of which is to simulate scarcity) expected to be reached at some point in the first half of next century.
When the cryptocurrency was in its infancy, mining bitcoin was relatively easy, such that an individual with a powerful computer could successfully turn a profit. In other words, the value of the cryptocurrency reward was greater than the cost of electricity expended (and any other overheads).
Today, the bitcoin mining difficulty has squeezed individual miners from the market (despite the high value of a single coin) and the scene is dominated by mining syndicates, which see participants pool computing resources in return for a portion of the group’s cryptocurrency earnings.
These bitcoin mining consortia have been known to take extensive measures to improve profit margins, including establishing bespoke agreements with power providers that guarantee cheaper energy in exchange for commitment over a predefined period.
While it is next to impossible for an individual user to turn a profit mining bitcoin today, mining syndicates provide an alternate route for dedicated enthusiasts.
However, it is important to understand that, due to the variance in mining difficulty and fluctuation in bitcoin value, participating in a mining operation is a speculative pursuit and does not guarantee an income.
Via CoinDesk
Mining bitcoin now demands more computational power than ever before, with mining difficulty reaching a new high of 17.35 trillion, up 9.89% from the previous record posted on July 1. The new bitcoin mining difficulty (a metric that describes how challenging it is to compete for cryptocurrency rewards on the…
Recent Posts
- Microsoft hires former Meta exec to lead AI supercomputing team
- Some Samsung Galaxy owners are getting screen replacements to fix major issue
- Is your PC having trouble? Your smart TV might be to blame
- Ecosia launches plant-friendly cross-platform browser
- Apple might be the streaming home of soccer’s next big tournament
Archives
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011