The difficulty of mining Bitcoins has increased as the network gains popularity. After China had placed a ban on cryptocurrency mining, this is far from the expectation. Bitcoin miners were able to set up successfully in different regions around the globe, and since then mining activity has increased.
It comes with an increase in blocks being mined every hour, which is beyond all our expectations. This has not only affected the mining sector, but it is also having an impact on the rest of the industry.
Bitcoin Mining is difficult at the New ATH
The production rate of blocks has increased to 6 per hour, which is more than was expected. The current number of blocks that can be mined per hour is now 6.2. Mining difficulty has reached new highs due to the increased block production. There will be an expected 4-5% adjustment to mining difficulty in the future.
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It will quickly push the difficulty of bitcoin mining to an all-time record. The trend continues as it did after August 2021’s China ban. Given that last year, the China ban saw the bitcoin hashrate crash by 50%, it would be even more than expected.
Source: Arcane Research| Source: Arcane Research
Mining Companies Enjoy Greater Profitability
Block production has had a significant impact on the mining difficulties, but it is not the only one. The increase in block production has had a positive impact on other areas, such as daily miners’ revenues. Bitcoin miners saw 6.86% growth in the past week, ending March 28th. It is more than $2 million in an increase in seven days. It is also important to remember that same-day revenues were up 7% over the previous week.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
In the same period, daily transaction volumes saw an increase. The average transaction volume reached $6.4 billion per day, an increase of 11%. This was due to a record increase in average transaction volume, despite the fact that daily transaction volumes had grown by 1.5%. In the seven days that data was collected, the average transaction volume grew by 9%.
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The highest week-to-week growth was in transaction fees. Because there’s more block space demand, transaction fees have seen steady growth since then. Each day, transaction fees increased 20% to $460,000
Featured image taken from Investopedia. Chart from TradingView.com