BTCUSD mining rate update: Bitcoin mining difficulty rate highest in 2 years

Sabyasaachi Karmakar -

Two weeks back, the difficulty rate of Bitcoin mining adjusted itself to accommodate many more miners. The algorithm for BTCUSD mining is such that it auto-adjusts every two weeks.

After the third halving, several miners turned unprofitable. Therefore, many miners moved out of the network, causing a capitulation in the Bitcoin Hash Ribbons.

BTCUSD rate adjustment was imminent, but the massive jump unprecedented

The BTCUSD mining difficulty adjusts after every 2016 blocks of Bitcoins mined. It happens so that the time required to mine remains roughly around ten minutes. The adjustment takes into account the following parameters:

  • number of miners participating in the network
  • The time needed to solve a complex problem to mine a block

The last drop in the BTCUSD mining difficulty level caused a massive influx of miners to join the network. As soon as the miners felt they could bag profits, they rushed to their old ways.

BTCUSD mining difficulty sees the greatest difficulty increase in over two years

The BTCUSD mining difficulty rate increased by over 14.95%, which happens to be the highest increase since January 2018. It will cause several miners to shut down their systems and move out of the network.

It is because many miners use old systems to mine. The newer machines with higher computational power easily outshine the ancient ones. It forces several BTCUSD miners to become obsolete.

How does a change in mining difficulty affect BTCUSD

Published on: TradingView.com

Here is the BTCUSD daily timeframe, and the lower part of the chart shows the capitulation in the Bitcoin Hash Ribbons.

Any investor will want to know the implications of the mining difficulty change if it affects the Bitcoin prices. There are a couple of ways to look at the transformation:

  1. First, BTCUSD mining might become concentrated at the hands of the more endowed and wealthy miners. It could cause a decrease in the Hash Rate and therefore create a capitulation.
  2. Second, a lot of miners are now ‘Hodling’ the Bitcoins, they mine. It could cause an unhealthy accumulation within the hands of a few over a while.

Some miners would then have the power to swing Bitcoin prices as per their will.

However, the rate will auto-adjust in another two weeks, and probably more miners would re-enter the network!