Bitcoin mining now demands more computing power than ever before, with mining difficulties hitting a new high of 17.35 trillion, up 9.89% from the previous record posted on July 1. The new bitcoin mining difficulty (a measure that describes how difficult it is to compete for cryptocurrency rewards on the bitcoin blockchain) is a reflection of the increase in computing power dedicated to bitcoin mining in recent weeks. Automatically modified after each 2016 block processed, which occurs approximately every two weeks, the difficulty of bitcoin mining varies depending on the level of competition in the network. If competition among miners is high during the two-week period, bitcoin mining will become more complex by the next 2016 block cycle, depending on the network design. The new high was reached two months after bitcoin's third halving, bringing the reward for successful validation of a new block down from 12.5 to 6.25 bitcoin, or from about €115,000 to 57,500. € according to the current rate. By halving the revenue generated by mining operations, the landmark event was to eliminate miners, who were deemed unable to bear the new operating cost. However, the new record mining difficulty suggests that investment in high-end mining equipment has only halved since the event.
Bitcoin mining
Bitcoin is the first cryptocurrency in the world and the most important today in terms of market capitalization, followed by Ethereum and XRP. The number of bitcoins currently in existence is 18 million, the ceiling (whose function is to simulate scarcity) should be reached sometime in the first half of the next century. When cryptocurrency was in its infancy, bitcoin mining was relatively easy, so a person with a powerful computer could successfully turn a profit. In other words, the value of the cryptocurrency reward was greater than the cost of the electricity spent (and any other overhead). Today, the difficulty of bitcoin mining has forced individual miners into the market (despite the high value of a single coin) and the scene is dominated by mining syndicates, which see participants pooling IT resources. in exchange part of the group's cryptocurrency income. These bitcoin mining pools are known to take significant steps to improve profit margins, including setting up bespoke deals with electricity providers that guarantee cheaper power in exchange for a commitment for a pre-defined period. Although it is nearly impossible today for an individual user to mine Bitcoin for profit, mining syndicates offer an alternative route for enthusiasts. However, it is important to understand that due to variation in mining difficulty and fluctuation in the value of bitcoin, participation in a mining operation is a speculative pursuit and does not guarantee income. Via CoinDesk