According to data from Bitcoin mining performance tracking company btc.com, Bitcoin mining difficulty has increased significantly. As noted on Twitter, by popular cryptocurrency reporter Wu blockchain, Bitcoin mining difficulty has increased by almost 5%.
According to his tweet,
†According to BTCcom, the current Bitcoin mining difficulty reached 31.25 T, up 4.89% and reaching an all-time high.
Bitcoin mining difficulty reaches new levels
The new development could spell the demise for Bitcoin miners. Since it also appears that the price of Bitcoin is taking a downward turn, Bitcoin miners may be heading for a storm.
“But as Bitcoin drops to $30,000, more miners will approach its closing price.” added Wu.
The price of Bitcoin continues to fall, Bitcoin mining companies are about to record significant losses. An observer noted this in his tweet, which was in response to the increase in mining problems, saying:
“Bitcoin mining companies will be in serious trouble if BTC stays below 30k for a long time. Some have bought mining hardware (delivery in 2022) for $100 per TH/s or more.”
What to expect?
On April 28, the Bitcoin network hash rate hit a new ATH of 258 EH/s. By the end of the month, it was down 220 EH/s without any significant negative impact on the BTC network’s difficulty. Meanwhile, the price of BTC has fallen by 23% in the last fortnight.
However, the main concern is not that BTC will fall below $30,000 at trading levels, but how long it will remain in decline.
On the other hand, the network is well positioned to hit a better all-time high given the price and overall security. Fortunately, the absence of short-term holders also leaves room for on-chain indicators to recommend bullish momentum.
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously, he was a co-founder of Govt. of India supported startup InThinks and is currently editor-in-chief at Coingape and CEO at SquadX, a fintech startup. He has published over 100 articles on cryptocurrency and blockchain and has assisted a number of ICOs in their success. He co-designed an industry training for blockchain development and has conducted many interviews in the past. Follow him on Twitter @sharmasunil8114 and contact him at sunil (at) coingape.com
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