Bitcoin (BTC) miners are likely to notice the bitcoin crash in the near future. The difficulty of the network was adjusted yesterday and has reached a record high. In short, mining BTC has never been so difficult, while the price has fallen.
Bitcoin difficulty to record
Since July 2021, the computing power of the Bitcoin network has been in a clear upward trend. Computing power took a huge hit just before that after China imposed a ban on mining. More and more miners from other parts of the world subsequently joined the network after it turned out that it can be quite a lucrative business. And over the past year, this attraction was mainly due to the rising bitcoin price.
To ensure that a block of transactions is added to the blockchain every 10 minutes on average, the network automatically balances itself using the difficulty adjustment. This adjustment occurs every 2,016 blocks. If the block time during this period was on average less than 10 minutes, the difficulty goes up. This makes the work more difficult for miners and the block times should go back to 10 minutes.
After the steady upward trend in computing power, which also hit an all-time high in early May, difficulty increased by 4.9% yesterday. It has never been so difficult for miners to mine bitcoins!
Miners will feel pain after bitcoin crash
Although this indicates that the network is also very secure, it is possible that BTC miners will have a hard time. Due to the falling bitcoin price, it is becoming less and less profitable to mine.
It is therefore plausible that the hash rate will start to decline in the near future. This decrease will of course make it easier to mine bitcoins in the long run because the difficulty will also decrease in that case.