Bitcoin’s production difficulty rate is approaching a historic high, rising 8.45% in one day, April 21st, to 15.96 conventional trillion (T). This change became noticeable when a block of cryptocurrency No. 626976 was found in the Blockchain. The jump in this indicator means a sharp increase in the competition of the miners for mining blocks and receiving Bitcoin as a reward, while the record value of mining complexity is 17.31 conventional trillion (T). This level is expected to be reached by May 5th this year.
Find out how the halving of Bitcoin SV and Bitcoin Cash has led to an increase in the Bitcoin production complexity and discover the most interesting business headlines in the crypto sector with the Born2Invest mobile app.
Why is there an increase in the Bitcoin production complexity
The increase in the Bitcoin production complexity means both the use of more advanced mining equipment and the transition to Bitcoin mining of some of the miners that previously produced Bitcoin SV and Bitcoin Cash. The recent halvings of these altcoins have resulted in a decline in the profitability of their mining, as well as the desire to switch to Bitcoin mining, which will also be halved in the block, and this will happen in about 24 days.
After that, it is possible that some of the Bitcoin SV and Bitcoin Cash miners will return to production and the Bitcoin hash rate will decrease. However, that will only be temporary, as the expected decrease in Bitcoin production difficulties in the mining industry will be followed by new players. In addition to those who will be able to maintain their profitability and continue to produce the oldest cryptocurrency.
The sharp increase in the Bitcoin complexity observed on April 21st was a record since September 2019, which is already quite rare. Miners are now more focused on the fact that Bitcoin’s production may rise significantly after halving.
Meanwhile, often commenting on the situation in the cryptosphere, trader Peter Brandt believes that the main obstacle to the increase in the price of Bitcoin is that it is not a sufficiently common investment asset in the world.
The recently published report “The State of the Cryptographic Market in 2020”, prepared by Genesis Mining, contains the results of a sociological survey among investors in Bitcoin. Based on the report it is clear that almost 50% of respondents believe that the price of Bitcoin will go up in the next three months, while the remaining 50% hold the opposite view.
A halving is also expected for Bitcoin
Analytical group Coinmetrics in its review of the crypto voltaic market drew attention to the fact that on April 8th and 9th, there will be halvings in blocks of crypto voltaic Bitcoin Cash and Bitcoin SV, respectively. All this happened a month before the same event is expected with Bitcoin in the first half of May, tentatively on May 14th. Halving is an automatic event in the life of crypto voltaic people, which happens regularly and leads to another reduction of the award for each new block that “catches” a particular miner.
Halving is a big test for all miners to see how effectively they manage costs. It is a question, first of all, of depth of practical knowledge in the field of financial management, both in the field of cost management and building a scenario analysis of business development in a situation of uncertainty of a number of factors, and creation of a hedge strategy.
The recent decline in Bitcoin production difficulties (16% on March 25th, a record-breaking decline since 2011) due to some players leaving the mining industry, opened up comfortable conditions for the remaining miners, as well as for new participants.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CLICKCHAIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Savills IM refinances two Italian assets with one of the first green loans in Italy
One of the first green loans in Italy will refinance the retail park in Fidenza (Parma) and the U4 office...
4 tips to market your small business locally
Whether you’ve recently started a small business or have pivoted your sales tactics for your company because of COVID-19, you’re...
Bitcoin revolution by integration with PayPal
The integration of Bitcoin with PayPal is probably one of the most important news for the entire crypto industry in...
A system of Environmental Sustainability Certification to be created in Italy
The first goal of the experimental program is to create a system of "Environmental Sustainability Certification" that allows a project...
Why your business needs professional language translation services?
Digital marketers may spend months creating a campaign for a product launch in a foreign market, but if it’s not...
Africa6 days ago
Fruitbox Africa: Frankfurt investor and Siemens to create jobs in Ethiopia
Africa4 days ago
Why countries in southern Africa could become leaders in the cannabis sector
Featured5 days ago
How the coronavirus pandemic impacted the German Fintech sector
Featured5 days ago
Why is the stock market up?