Bitcoin (BTC) mining difficulty increased by 0.63% with the latest adjustment on the network. In addition to the mining difficulty, the Bitcoin Hash Rate has also increased.
The change was expressed in an update released by BTC.com on Thursday. According to the compiled data, the network's hash rate has also increased by about 1.5% since the last update on August 4th.
Mining difficulty refers to the complexity of the mathematical process behind mining where miners constantly try to find a hash value below a certain level. Miners who "discover" this hash get a reward for the next block of transactions. The reward is adjusted every 2,016 blocks (approximately every two weeks) in sync with the network's hash rate. In other words, the increase in mining difficulty is actually an indication that new miners have entered the network.
BTC's mining difficulty has drastically reduced since the cryptocurrency market crashed in May. The last slight increase followed the 1.74 percent increase on 4 August. Zack Voell, an analyst at mining firm Braiins, said we'll likely see slightly positive adjustments for the rest of the summer as miners put more machines into operation.
"However, large increases in hash rate and difficulty are unlikely until the market recovers significantly."
A short time ago, as a result of the decrease in the price of Bitcoin, some miners began to cost more than the profits they made from the coins they produced. Thereupon, various major cryptocurrency mining companies had to sell some of their BTCs. The market has experienced a partial recovery recently.
Russian crypto miners have increased their electricity consumption 20 times in the last 5 years
The energy requirements of Russian cryptocurrency miners have increased significantly since 2017. According to experts from mining hardware importer Intelion Data Systems, there is an annual energy consumption increase of 150 percent in the country.
According to calculations, 1.25 gigawatts of energy were needed in 2021 to mine a Bitcoin. The researchers say the volume of electricity used to mint other major cryptocurrencies like Ethereum (ETH) and Litecoin (LTC) could be 40-50% of the energy consumed for BTC.