Mining bitcoin has become faster due to the shutdown of a large amount of mining equipment
Cheaper bitcoin and rising electricity prices force miners to shut down their devices. BTC.com posted an update on the difficulty of mining, which recorded the lowest drop since the summer of 2021 – minus 7.2%.
Source: The Block
A growing number of miners can not resist the challenges of the market and suffer losses, which lead to large debts. Information about the facts of equipment shutdowns appeared as early as last week. It was reflected in the change in the difficulty level of BTC mining. According to Foundry Vice President of Development Jeff Berkey, the reason for the change in the difficulty level was the shutdown of mining machines that were no longer generating profits and were operating at a disadvantage.
William Foxley, Director of Media and Strategy at Compass Mining, predicted the near-term outlook:
Further declines in sophistication are likely, as a significant amount of equipment is too unprofitable. Cryptocurrency mining rigs are flooding the market even with prices dropping nearly 80% year-over-year.
Source: The Block
The change in complexity occurs every 2016 block, about once every two weeks. Luxor’s chief operating officer recently suggested that the current situation would help troubled miners withstand market pressure, provided they use highly efficient devices.
