Another correction in BTC mining complexity recorded growth

  • 11:17 Dec 20, 2022
Another correction in BTC mining complexity recorded growth

After the complexity record was broken in October and went down, the new result showed an increase of 3.27%. The reason for such fluctuations was not clear to many industry experts. 

Daniel Frumkin, director of research at Braiins, notes that the most logical explanation was the switching on and off of hardware:

I think the extent of the capitulation was somewhat exaggerated, and the decline in complexity coincided with an unfortunate period of reaction to high energy prices and the introduction of more efficient equipment. 

Also, some community members have noted that the difficulty may depend on the "luck" of the miner. In particular, Ethan Vera, one of Luxor's top managers, said that having 10% of the total hashrate does not always guarantee getting 10% blocks:

You can mine 5%, and you can mine 15%. Theoretically, this could happen to the entire industry, so, in part, the previous drop of 7.32% could be a result of this confluence of circumstances. 

Kevin Zhang, Foundry vice president, believes that several factors influence hashrate volatility:

We've recently plugged in a large number of efficient next-generation asic. At the same time, many large miners have declared bankruptcy. The moment the volatility of the BTC value reaches an extreme value, a similar situation occurs with the hashrate. 

According to Marathon CEO Fred Thiel, hashrates are expected to rise in the future:

Companies will be plugging in devices with high efficiency which will lead to this metric increase. 


Share to:
Related news