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Bitcoin mining difficulty has reached a record high of 127.6 trillion. On paper that is bad news for miners. So why are they still smiling?
Bitcoin [BTC] Mining has just become more difficult. Network difficulty has risen to a record high of 127.62 trillion, after a steady increase in Bitcoin’s hashratewhich is now on average more than 1.13 ZH/s (Zettahashes per second).
More computing power is added to the network in simple terms. As a result, the protocol has responded by increasing the difficulty, which means more hashpower, more energy consumption and tighter profit margins.
On paper that sounds like bad news for miners. And yet the position of the miner (MPI) fell in a negative area. So if the Posthalving Squeeze is real, why does miners still play defense?
Bitcoin -mybouw still sees the most difficult circumstances
For context, the number 127.62 trillion refers to the mining problems of Bitcoin. This means that miners now have to make more than 127 trillion hash attempts to successfully dismiss a block.
This number adapts approximately every two weeks based on how much computing power is on the network. The higher the hashrate, the harder the network makes to win a block.
The graph below shows two clear jumps in difficulty. One was around July 12 and another near July 26. These increases mean that more miners (or more powerful machines) have joined the network.
Source: Coinwarz
As a result, the network is more competitive than ever. With Bitcoin mining difficulties that affect record highs, miners now have been working in the most challenging environment so far.
And after lowering it is even more difficult. Rewards are up to 3,125 BTC, which means that miners earn less for the same (or more) hashpower. That puts serious pressure on profitability.
So the big question: Is the squeeze worth it?
Mining became smarter, not harder
In just one month, Bitcoin minimal difficulties with 11 trillion units shot, jumps from 116 trillion to more than 127 trillion, which indicates an enormous adjustment in the network. And miners definitely felt the pinch.
The position of the miner (MPI) beaten Above 2 not once, but three times. Usually it is a sign that miners have loaded BTC to cover rising overhead costs while the margins became tighter.
Can that pressure return? Possible. But for now, signals in chains suggest that miners are holding. Why? The average transaction costs of Bitcoin have risen more than 50% mother, so that the reduced block rewards are compensated after losing.
Source: Artemis Terminal
Simply put, bitcoin -mining is now a strategic game.
With difficulty on all time highlights, miners squeeze profit on other means. The Hashrate Surge tells the story: New-gen hardware Is online and sends better efficiency at lower costs.
Discard an increased income in July and the 10% of Bitcoin in July.
At that price, the 3,125 BTC block remuneration alone, nets miners more than $ 384,000 per block, and that is before counting costs, making it worth playing.