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Record drop in hashing difficulty impacts recovery in Bitcoin mining revenue

Source: https://bit.ly/3hOZqTO

Thanks to a record-low difficulty, bitcoin mining yields per terahash per second (TH/s) of computing power have recovered to the same level when bitcoin was around $45,000 in mid-May.

The source dashboard shows that daily mining revenue per TH/s is up, after Bitcoin mining difficulty posted its biggest ever drop of nearly 28% on July 3.

The data from “ Bitinfocharts ” has a slightly different estimate of the daily mining revenue per TH/s.

But they generally show a similar trend.

The record drop in difficulty in bitcoin mining was a direct result of China’s request for power plants to cut their supply to bitcoin mining facilities over the past month.

The computing and hashing capacity has decreased by more than 90 million TH/s which is about 50% of the total network hash rate.

Source: 
The Block Crypto Data.

But for the bitcoin miners who were able to stay online all the time, this means that their daily shares of bitcoin block rewards increased proportionately with the decrease in difficulty.

When the Chinese government decided to step up efforts to crack down on bitcoin mining in early June, miners began migrating and searching for places with favorable weather and cheap electricity to move to.

After lockdown orders in China’s Xinjiang and Sichuan provinces, second-hand hardware has flooded the market with a massive supply of millions of ASIC Bitcoin miners who have been sacked in recent weeks.

The crackdown from China has also affected Ethereum and other crypto miners, who have been dumping used fee-processing units (FPUs) to second-hand markets.

Therefore, industry experts do not expect the Bitcoin hash rate to recover to an all-time high of around 180 million TH/s anytime soon, allowing more scope for existing miners to take advantage of the reduced mining difficulty.

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