Some Bitcoin miners (BTC) may become unprofitable again due to a recent complexity adjustment.
Earlier this week, the amendment to the network mining problem grew by 14.95%, the largest increase since January 2018. The regular coding that occurs in every 2016 block is pre-refreshed in the blockchain to keep the mining speed in blocker for 10 minutes. ,
The latest revision could prevent the growing trend in the mining sector: the old machines will return to working condition after being halved. In May, the Bitcoins ban reward was halved, causing many miners to stop outdated cars, or who want to sell their equipment or switch to cheaper electricity.
Coinmetrics data analyst Karim Helmy told Cointelegraph that Antminer S9s, the cheapest and most popular Bitmain mining device, started returning to the network as a result of two negative adjustments – 9.29% and 6%, before the last update earlier in June.
“So the S9 really came back after the last difficulty adjustment, which was a big step down, not that. Their comeback to the internet was the source of the increased fragmentation that caused this major update.”
Thomas Heller, director of global business for the leading Bitcoin mining group F2Pool, stressed that the older units have returned after “becoming profitable again at the border”. However, he added that the increase in hash speed was also caused by a new generation of ASICs such as MicroBt M30 and Bitmain Antminer S19, which were included for the first time after the final dispatch to the owners:
“Before adjusting the complexity, the recent increase in fragmentation was mainly imposed on the listed old genetic machines and some of the first-time M30, S19 and A11 machines.”
Now that Bitcoin has become increasingly difficult to extract, some devices may turn off or switch to other coins that support the SHA256 algorithm again, Heller noted:
“One of the key indicators is the daily income from mining in TH / s, and now 1 TH / s will save you about $ 0.078 a day for mining BTC. Some miners are likely to switch to BCH and BSV mining, and some will turn off the machinery to wait for them.”
Helmy agreed that older miners would likely be stopped again, but indicated that conditions on the ground would be “similar to those that existed soon after half”:
“There are many other factors here, including the China rainy season and bitcoin prices.”
According to Hiller, based on the latest amendment alone, “There will be no major changes in the mining industry,” and he concluded:
“The dance will continue between price, speed, and sophistication, while miners will continue to improve and try to reduce OPEX costs.”
Shredder speed may decrease slightly.
As Cointelegraph notes, BTC segmentation rates ranged more than 100 EH / s, while Blockfolio analyst said, “Retail has joined the network more than once since the operation of the historic Bull Bull Market 2017/18”.
Heller and Helmy both agreed that the hash rate might drop slightly due to the high level of sophistication, but this will largely depend on other factors, such as the price of electricity and the price of bitcoin.
The currency gauge also indicated that Bitmain’s growing power struggle could lead to the sending of modern first-class miners, which in turn could leave the network without additional hashing power.