Bitcoin mining has become competitive than ever, new network data shows.
With all the doom and gloom being published about Bitcoin at the moment it is often hard to overlook how it has been designed. When prices plummet, hashrate and mining difficulty follow suit as the blockchain operates exactly as it has been designed.
The mainstream merchants of doom are almost rubbing their grubby hands together with glee as Bitcoin falls to new yearly lows and drops over 80% from its all-time high. Stories of mining farms closing down due to non-profitability have added fuel to the fire. Even established finance websites such as Marketwatch are running headlines of despair and crypto worthlessness.
According to that opinion piece, Bitcoin is getting close to the point where it becomes worthless claiming that a fall in price to below the cost to mine will render the digital currency redundant. However, with the falling price comes a decline in difficulty as highlighted by charts on Blockchain.info.
The 15% fall in difficulty shows the ease at which miners can find a new block. Hashrate, which has fallen by the same amount, shows the amount of computing power required to make the calculations.
At the time of writing the hashrate has fallen to just below 32 million TH/s.
As powerful mining machines such as Bitmain’s Antminer S9 shut down due to power consumption costs there is less computing power in the mining pool which will reduce the difficulty.
Some observers have noted that this has been the biggest fall in Bitcoin history.
#Bitcoin just had its second largest drop in mining difficulty in history: -15.1%. This is the current ranking:
— Fernando Ulrich (@fernandoulrich) December 3, 2018
This fall has come a year after the biggest rise in Bitcoin history so things are ironing themselves out in the ecosystem and the blockchain is behaving as it was designed to. The fall makes it more profitable to mine Bitcoin than some of the other cryptocurrencies. This may open the doors to new miners and reduce the power of the conglomerates such as Bitmain.
As previously reported by ETW Bitcoin miners are now switching to alternatives such as BCH or BSV. The recent ‘hash war’ between the rival groups and attempts to entice BTC miners over to their camp no doubt had some influence over the recent market rout which dropped prices by almost 40%.
Things will eventually balance themselves out in the Bitcoin network, it will find a bottom, probably stay there for quite a while then, according to many industry observers, rally again sometime around the middle of next year.
The post Bitcoin by Design; Falling Difficulty and Hashrate Makes Mining Easier appeared first on Ethereum World News.
The ‘difficulty bomb’ that has been on the minds of all Ethereum Classic users has finally been put to rest after the implementation of a new policy that has been two years in the making.
After a disagreement over how to handle the funds lost in the hack on Ethereum’s smart-contract funding project, the DAO, the Ethereum network forked into two separate versions, with most of the developers going with the version of the blockchain that agreed to rewrite history and return the lost funds.
Ethereum Classic supporters felt that the chain should never be altered, and continued the original Ethereum protocol while the project now called Ethereum switched to Proof of Stake to eliminate mining as a form of validating transactions. A feature was implemented in the chain prior to the fork to reduce mining rewards and incentivize developers to switch to PoS but Ethereum Classic developers have no plans to do so, citing their support of PoW as the most decentralized form of validation.
The difficulty bomb feature would have rendered mining unprofitable, and with no incentive to mine new blocks, the network would have collapsed entirely. Block 6,100,000 was viewed as the last safe block to implement a change before it was too late.
Ethereum Classic developers scheduled a hard fork to include the ECIP-1041 update on block 5,900,000 and yesterday announced the success of the fork, telling CoinDesk that most nodes had already upgraded before the fork took place. Nodes wishing to continue participating will have to upgrade to the new fork as well.
Bomb Has Been Diffused 💣 https://t.co/bFo5IQl34I
— Ethereum Classic (@eth_classic) May 29, 2018
As the fork has been a long time coming it was expected and did not create any noticeable instability or price fluctuation in the Ethereum Classic currency.
The image below taken from GasTracker.io shows the update successfully put in place on block 5,900,000 which was entered into the blockchain yesterday at 18:20 UTC.
The difficulty for mining the second leading in the cryptocurrency pack – Ethereum has just jumped upwards as it never did before.
In the event that you are mining Ethererum, there is a chance of notice that the difficulty has just surged to its highest territory ever – as it is hove
ring right now at an unimaginably 3TH. This is a ‘game changer’ as it obviously push out many miners.
A similar but yet minor difficulty increase happened in July as it climbed from 1.25TH to 1.75TH. However, from 2.3TH to 3TH did the mining Diff increase only in 24 hours.
Rolling back to historical data, Ethereum to be mined in June had a difficulty of 1TH since then its rise was painful but stable. The increase did play out many miners that are relevant minor and small in the network. Lets wait how it will continue and how profitable will mining be in the future.