The difficulty of mining Bitcoin (BTC) is expected to break a record over the next few hours, while the profit margins of miners are decreasing.
According to data from Bitcoin mining pool BTC.com, at 14:47 UTC, the Bitcoin mining difficulty, a measure of how difficult it is to obtain mining rewards, is expected to rise by around 4.19 percent.
A record (ATH) of 28.6 T is possible, which would be an improvement above the previous record of 27.97 T set in February.
However, despite the fact that this year’s record is not the most outstanding of this year, the increase in difficulty comes after two modest improvements that had helped lessen the difficulty of previous ATHs.
However, the system’s computing power, or hashrate, has increased since the last difficulty change two weeks ago. According to BitInfoCharts.com data, the average 7-day hashrate was essentially unchanged between March 29 and the time the modification was made.
While Bitcoin mining revenue increased by little under 14%, the price of BTC rose significantly, from $ 40,922 on March 17 to $ 47,885 by March 29.
In order to maintain a block duration of 10 minutes, the difficulty of mining Bitcoin is increased twice weekly (or, more precisely, every 2016 block). On March 29, the average block time for the previous seven days was 9.54 minutes.
Miners’ holdings of newly minted BTC have surpassed their investments, according to ByteTree data, over the course of the past week. It was the other way around in previous weeks.
A BTC price of roughly USD 47,151 was seen at 14:50 UTC. During the day, it dropped 1%, but over the course of one week, it rose by 11%.
Mines are “an economically significant enterprise,” according to the most recent report by Coin Metrics. The overall revenue generated by Bitcoin mining is expected to reach USD 17 billion in 2021, according to current estimates. “North American miners were dubbed the industry’s new worldwide leading players” in the wake of China’s clampdown on BTC and crypto-mining, they added.