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Bitcoin Mining Heats Up: High Difficulty Adjustment, Pool Consolidation, Less Concentration in China


Bitcoin Mining Heats Up: High Difficulty Adjustment, Pool Consolidation, Less Concentration in China

It’s been approximately 37 days since the notorious Bitcoin reward halving that took place on Monday, May 11, 2020. On June 16, the Bitcoin network saw a large upwards difficulty adjustment making it much harder to mine bitcoins and slowing down the issuance rate because block generation has slowed down. Furthermore, a recent research report predicts the SHA256 ASIC mining industry will grow more consolidated in the future.

Bitcoin Network Difficulty Jumps to 15.7 Trillion

One of the most lucrative but also one of the most competitive operations in the crypto industry is bitcoin mining. Thousands of individuals and organizations worldwide leverage application-specific integrated circuit (ASIC) or custom chips to mine bitcoins using the SHA256 consensus algorithm. Bitcoin Mining Heats Up: High Difficulty Adjustment, Pool Consolidation, Less Concentration in China When more people join in on mining, the overall hashrate rises but every two weeks, the difficulty adjustment algorithm (DAA) makes it harder to mine. On the opposite side of the spectrum, if miners capitulate and leave the Bitcoin network, then the DAA will adjust downward making it easier to mine bitcoins. On June 16, 2020, the Bitcoin (BTC) network saw a large upward difficulty adjustment to a height of 15.784T at block height 635,040. Read More...