Bitcoin mining is a widely used method despite low prices. Since February, mining has become 10% more difficult, which raises other questions. First of all, Bitcoin investors now know that the value of BTC in their hands and the turnover will decrease – will BTC prices increase because of this?
Bitcoin Price Uncertainty
Uncertainty about the price of the largest cryptocurrency Bitcoin mining (BTC) continues. BTCOM, which provides data on the Bitcoin network, has released new data on mining difficulty. According to the data, the mining difficulty of the leading cryptocurrency Bitcoin has increased by 10 percent within a short period of time.
As is known, mining difficulty indicates the degree of complexity of the calculation process used in blockchain networks. The more difficult the calculation time, the more difficult it is to achieve blockchain rewards. This metric is updated every 2,016 blocks, which is an average of every two weeks.
Is The Direction Of The Bitcoin Price Clear?
Although the bitcoin price has been testing the strong resistance of $25,000 since last week, it has not managed to break it. The subsequent decline led to a consolidation of the bitcoin price at the $23,000 level. Despite the drop in the price of the leading cryptocurrency Bitcoin, the rise of mining difficulty has left a question mark in investors’ minds. In other words, prices can rise spontaneously due to demand when the number is low. This has caused many investors to rethink their baskets.
The Number Of Bitcoin Mining Machines Has Increased
The difficulty level of bitcoin mining has increased by 10 percent in a short period of time, causing a lot of talk. Experts believe that this increase is due to non-market conditions. In particular, after the winter season, falling energy prices benefited miners. BTC miners, whose costs are reduced by electricity consumption, continue to mine with more machines.
Mining Operations Remain Stable
Ethan Vera, CEO of crypto mining company Luxor, explained his views on this topic discussed in the community. He pointed out that bitcoin mining is using more efficient and powerful mining equipment thanks to evolving technology, saying, “As more efficient mining machines enter the market, the energy cost per unit is decreasing. Although we should earn more as the bitcoin price rises, the difficulty of mining is balanced. He made a statement in the form.
After the rise of bitcoin mining, eyes turned to the cryptocurrency market. Despite falling costs for miners, the bitcoin price is expected to stabilize as the difficulty increases. Some cryptocurrency investors believe that the BTC price will rise to a high level as mining becomes increasingly difficult. To assess the consequences of this situation, it is necessary to look at past trends. Although the difficulty has increased in the past depending on the conditions of the time, it has had little impact on a numerical basis.
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