Bitcoin Mining Difficulty Adjusts Down for the Second Time in a Row
Bitcoin mining difficulty has been adjusting for quite some time. With the hash rate declining as more miners go offline due to declining profitability, mining difficulties followed roughly the same trend. However, instead of slowing down from the persistent trend of recent months, the difficulty has been adjusted lower.
Decreases mining difficulty
Instead of increasing the difficulty as intended, it decreases. After miners saw their cash flow drop in the past two months, they struggled hard to keep their businesses going. Hourly blocks produced had decreased due to declining hashrate.
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The bitcoin mining hashrate hit a new all-time high in June. But that would be short-lived given the drop in July. Currently, the production of blocks per hour is 5.70, which is 7.71% less than the previous week’s production rate of 6.18 blocks per hour. As a result, there was another downward difficulty adjustment, marking two downward adjustments in a row. This comes after the difficulty brought the family back to normal levels the week before.
An interesting thing that happened was a unique event that was recorded in the mining space. On Saturday a total of six blocks were uncovered in 6.5 minutes, which is highly unlikely. However, the hashrate continues to drop.
Hashrate loses momentum | Source: Arcane Research
Bitcoin miners suffer losses
The drop in bitcoin miner revenue has never been fixed. Last week was no different from previous weeks as miner earnings continued to fall. This time, revenue fell 1.34% to $18.39 million in daily earned revenue from $18.64 million the previous week.
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However, daily realized fees increased despite declining trading volumes. Per diem rates increased 44.37% over the 7-day period to $404,688 from $280,310 the previous week. This increase in daily royalties increased the percentage of income made up of royalties by 0.70%. This means that fee income was 2.20% of total income, one of the highest on record.
BTC Price Trending Below $20,000 | Source: BTCUSD on TradingView.com
The fee will turn out to be the only green one in a sea of red metrics on the chain. Daily trading volumes decreased by 8.69%, while the number of transactions carried out per day decreased by 1.76%. Others include the average trading volume which saw a drop of 7.05%. Finally, the average number of transactions per block went from 1,814 to 1,782 in one week, resulting in a loss of 1.76%.
Featured Image from How to Start an LLC, Charts from Arcane Research and TradingView.com
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