Bitcoin stronger than ever, but miners suffer the drawbacks

Last month, the Bitcoin network hash rate hit a record for the umpteenth time this year. That indicated that the network was stronger than ever, but shortly after that the hashrate dropped again. Still, the dip was short-lived, as the hashrate is creeping back to an all-time high. Unfortunately, there are also signals that this may be negative news for miners.

Short hashrate record bitcoin mining

On Twitter, bitcoin analyst James van Straten writes that the hash rate rose again. To be precise, it is an increase of 60% after a significant dip of 35%. with that, the benchmark briefly broke the previous record last Saturday, which was only 2% below the new record.

The ‘price’ is now again just below the new high. It should be emphasized that the hashrate published by different websites is always an approximate value because it is incredibly difficult to measure exactly. A high hash rate indicates that miners are more willing to compete with each other for the same amount of bitcoins. That is therefore positive, because it measures how strong the willingness to compete is.

Bad weather ahead for BTC miners?

But in the end, an increase in competition is also reflected in the ‘difficulty level’ or mining difficulty in jargon. The ease with which miners can mine bitcoins is adjusted approximately every two weeks. In this way, the network prevents miners from mining all coins too quickly.

According to the Bitcoin Difficulty Estimator the next adjustment will take place sometime next Wednesday. Whereas at the previous moment on 29 June the value was adjusted down 3%, the coming value is estimated to be 7.5% higher. This indicates that miners will have a harder time again.

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Recently, Hashrate Index’s Jared Mellerud told Bloomberg that miners are going to have a much tougher time next year. Then the next halving will take place, after which miners will earn half less BTC than they do now. But many of these miners would be heavily in debt, and for many of them the costs are already very high. Many miners would not survive this, which may mean that the difficulty level will be significantly reduced.

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