The difficulty of mining bitcoin during the next two-week recalculation increased by 4,5%, which was the fourth increase in a row. In the first half of the summer, it fell from 25,05 T to 13,67 T due to a sharp decline in bitcoin mining in China and has been recovering since late July. Now the difficulty of mining is 18,42 T, and the increase in the previous segment reached 13,24%.
Despite the increasing difficulty, Bitcoin mining remains highly profitable due to the recent rise in the price of the cryptocurrency, according to the representatives of the pools.
“Price is growing faster than difficulty,” said Daniel Frumkin, analyst at Slush Pool.
Nick Hansen, CEO of Luxor mining company, confirmed that the profitability of mining bitcoin has grown by more than 2019% since the 80 bear market. In addition, the shutdown of Chinese miners had a positive impact on the results of those who are in other countries and continue to mine cryptocurrency.
The company for the placement of mining equipment Wattum believes that the slowdown in the growth of complexity at the last stage may be due to the exhaustion of resources for installing miners in the world:
“Currently there is no official place to accommodate miners. This situation will continue until the capabilities of the global infrastructure are equal to the demand. It is highly unlikely that we will see new highs in difficulty until the possibilities for hosting miners stabilize and the old hardware is connected to the network. In the course of a long search for cheap electricity with a stable supply, we found an extreme shortage of places to install disconnected miners. As the cost of placing equipment increases along with the profitability of mining, each operator of such sites seeks to increase resources. "
Hansen promised that the new sites will be operational in December, but most miners will not be able to connect their equipment until the first quarter of next year.
Another reason for the slowdown in difficulty growth is the end of the rainy season in southern China. As some miners continued to mine cryptocurrency in secret, the rate of hash recovery exceeded the expectations of many pool operators.
“The returns are so high that they might be willing to take additional risks, like getting back online, which we believe is happening,” Hansen added.