fbpx
  • Price Tracker
  • Guest Post
  • Advertising & Partnership
  • Press Release
  • Editorial Policy
Coin Culture
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Business
    • Policy & Regulation
    • Tech
    • People
  • Markets
    • Forecast
      • Ethereum Price Predictions
      • Bitcoin Price Predictions
  • 101 Guide
    • Blockchain Guide
    • Trading Guide
    • Bitcoin Guide
    • DeFi Guide
    • Ethereum Guide
  • Product Reviews
    • Crypto Exchange Reviews
      • CoinSpot Review
      • Swyftx Review
      • Binance Australia Review
      • MEXC Review
      • BitMart Exchange Review
      • Bybit Australia Review
      • CoinSpot Mastercard Review
    • Exchange Comparisons
      • CoinSpot vs Swyftx vs Binance
      • Coinspot vs Binance
      • Crypto.com vs. Binance
      • CoinSpot vs Kraken
      • Swyftx vs Coinbase
  • Contact
    • About Us
    • Submit Press Release
    • Submit Querry
    • Submit Guest Post
  • Crypto Wiki
No Result
View All Result
Coin Culture
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Business
    • Policy & Regulation
    • Tech
    • People
  • Markets
    • Forecast
      • Ethereum Price Predictions
      • Bitcoin Price Predictions
  • 101 Guide
    • Blockchain Guide
    • Trading Guide
    • Bitcoin Guide
    • DeFi Guide
    • Ethereum Guide
  • Product Reviews
    • Crypto Exchange Reviews
      • CoinSpot Review
      • Swyftx Review
      • Binance Australia Review
      • MEXC Review
      • BitMart Exchange Review
      • Bybit Australia Review
      • CoinSpot Mastercard Review
    • Exchange Comparisons
      • CoinSpot vs Swyftx vs Binance
      • Coinspot vs Binance
      • Crypto.com vs. Binance
      • CoinSpot vs Kraken
      • Swyftx vs Coinbase
  • Contact
    • About Us
    • Submit Press Release
    • Submit Querry
    • Submit Guest Post
  • Crypto Wiki
No Result
View All Result
Coin Culture Logo
No Result
View All Result

Home » Bitcoin mining difficulty shrinks for the first time this year

Bitcoin mining difficulty shrinks for the first time this year

Lucas N by Lucas N
July 1, 2022
in Currencies
Business Trends Graphs and charts 3d image
Share on FacebookShare on Twitter

You might also like

SUI Price Hits All-Time High – But Valuation Remain Questioned

Solana could “Seriously Challenge” Ethereum as Institutions Favour Scalability, Says Sygnum

Ethereum 50% below its all-time high due to Interoperability Challenges and Whale Inactivity

Average Bitcoin hash rate falls

The Bitcoin hash rate has been clocking several all-time highs this year, even though price action didn’t reflect the growth in the network.

However, the latest difficulty adjustment recorded the first fall in Bitcoin mining difficulty since November 2021. After six successive positive difficulty adjustments, the latest Bitcoin mining difficulty corrected by 1.49%. Thus, Bitcoin mining became more energy-intensive every time as miners had to invest more computing power. The average hash rate over the past two weeks fell to 197.19 exahashes per second and the average block time increased slightly to ten minutes and nine seconds. 

How the difficulty adjustment works

The Bitcoin network automatically adjusts the difficulty for newly mined blocks every 2,016 blocks, approximately every two weeks. To quote Satoshi Nakamoto from the Bitcoin whitepaper:

“The proof-of-work difficulty is determined by a moving average targeting an average number of blocks per hour. If they’re generated too fast, the difficulty increases.”

That is the reason why the latest increase in block time to ten minutes and nine seconds resulted in a slight decrease in mining difficulty. 

Where the Bitcoin hash rate will go from here

Most analysts still expect the Bitcoin hash rate to do exceptionally well in 2022. In fact, some even foresee the hash rate reduction to remain the only one in 2022, as more Bitcoin mining farms come online almost every week. Compared to the last few reductions, the current correction is also a drop in the ocean.

When China banned Bitcoin mining, the hash rate collapsed, and with it, the price of Bitcoin. Although countries like Kazakhstan, the United States and Canada eventually made up the difference, it took the network a few months to readjust. However, the recent correction will most likely not result in such a prolonged slump. Increasingly, countries become aware of the benefits Bitcoin mining can have for their economy.

For example, Laos expects nine-figure profits from Bitcoin mining. Australia has been making a serious push into mining, too. Moreover, Intel will release a new chip that should make Bitcoin mining even more efficient and lucrative.

Although particularly European countries like Norway have been skeptical of Bitcoin mining, most indicators point towards the mining industry growing even more, resulting in better fundamentals for Bitcoin and thus higher prices. As more miners enter the market, the network grows more secure and is effectively backed up by more computing power. This can positively affect prices, as higher prices often follow higher hash rates and vice versa.

Finally, Bitcoin mining is becoming more decentralised by the day, which could become an important narrative play for Bitcoin bulls in the face of global economic warfare and sanctions regimes. At this point, even nation-states look likely to incentivise Bitcoin mining for their political gains. 

Really not the worst time to be a Bitcoin miner.

Lucas N

Lucas N

Lucas N is Coin Culture's managing editor for people and market, covering opinon, interview and market analysis. He owns Near, Aurora and Chainlink

Recommended For You

SUI Price Hits All-Time High – But Valuation Remain Questioned

by John Hobbs
October 18, 2024
0
SUI Price Hits All-Time High – But Valuation Remain Questioned

SUI has recently closed the week at its all-time high (ATH) price of $2.30, outperforming top altcoins such as Polkadot (DOT) and ranking among the top 15 cryptocurrencies....

Read more

Solana could “Seriously Challenge” Ethereum as Institutions Favour Scalability, Says Sygnum

by John Hobbs
October 4, 2024
0
Solana could “Seriously Challenge” Ethereum as Institutions Favour Scalability, Says Sygnum

Swiss crypto bank Sygnum suggests that Solana could become a serious contender to Ethereum, particularly if financial institutions continue choosing it for real-world asset tokenization platforms and stablecoins. ...

Read more

Ethereum 50% below its all-time high due to Interoperability Challenges and Whale Inactivity

by John Hobbs
September 9, 2024
0
Ethereum 50% below its all-time high due to Interoperability Challenges and Whale Inactivity

Ethereum is currently grappling with significant market and technical challenges, which have contributed to its valuation being 50% below its all-time high of over $4,800. Analysts attribute this...

Read more

PayPal’s Stablecoin Reaches $1B Market Cap as Incentives Fuel Solana Activity

by John Hobbs
August 28, 2024
0
PayPal's Stablecoin Reaches $1B Market Cap as Incentives Fuel Solana Activity

PayPal's stablecoin, PYUSD, recently reached $1 billion in market cap, as reported by CoinMarketCap.  Issued with Paxos, PYUSD saw its supply more than double since June, despite the...

Read more

Concerns Rise Over Tron’s USDD After $732M Bitcoin Withdrawal From Reserve

by John Hobbs
August 24, 2024
0
Concerns Rise Over Tron's USDD After $732M Bitcoin Withdrawal From Reserve

The crypto community has shown concerns about the Tron-based stablecoin USDD after the Tron DAO withdrew $732 million worth of Bitcoin from its reserves. People fear that this...

Read more
Next Post
Concept of cryptocurrency ban showing with Bit coin and ban symbol on balance scale with judge hammer on background.

No more 'Bitcoin ban' in latest version of EU's crypto legislation

Please login to join discussion

Most popular

  • Why Brands Should Adopt A ‘Hybrid DAO’ Model

    Why Brands Should Adopt A ‘Hybrid DAO’ Model

    169 shares
    Share 68 Tweet 42
  • Kucoin Review 2024: Features, Fees & More

    146 shares
    Share 58 Tweet 37
  • Guide To Crypto Twitter: Influencers, Traders And Ventures 2024

    1202 shares
    Share 480 Tweet 300
  • Cryptocurrency Regulations in Australia: A Brief Overview 2024

    163 shares
    Share 65 Tweet 41
  • 11 Best Crypto Debit Cards In Australia: A Curated List 2024

    422 shares
    Share 169 Tweet 106

Recommended

Ethereum Foundation Reveals $788 Million in Crypto Holdings, Mostly in Ether, Amid Transparency Push

Ethereum Foundation Reveals $788 Million in Crypto Holdings, Mostly in Ether, Amid Transparency Push

November 9, 2024
Solana Surpasses Binance Coin (BNB) as Fourth-Largest Cryptocurrency

Solana Surpasses Binance Coin (BNB) as Fourth-Largest Cryptocurrency

November 8, 2024
Trump Declares Victory - What will the US Crypto be?

Trump Declares Victory – What will the US Crypto be?

November 6, 2024
Kraken Introduces Crypto Derivatives Suite for Australian Wholesale Clients

Kraken Introduces Crypto Derivatives Suite for Australian Wholesale Clients

November 5, 2024
coin culture logo

Your Australian news source for all things cryptocurrency. Coin Culture is an independent media outlet that aims to provide an Aussie take on crypto, digital assets, and investing.

Hot Topics

  • DeFi
  • NFT
  • Gaming

Top articles

CoinSpot Review
Swyftx Review
Best Crypto Exchanges Australia
CoinSpot vs Swyftx

BROWSE BY TAG

Altcoin News Bitcoin CoinSpot Cryptocurrencies Crypto Exchange Crypto Tax DeFi Dogecoin Dogecoin News ETF Ethereum Feature FED FTX Games hacks Layer2 Markets meme Metaverse Mining NFT Opinion People Policy and Regulation Polygon SEC Security Solana News Stablecoins Tech Top Crypto News Australia | CoinCulture Trading US web3 XRP News

RECENT POSTS

  • Ethereum Foundation Reveals $788 Million in Crypto Holdings, Mostly in Ether, Amid Transparency Push
  • Solana Surpasses Binance Coin (BNB) as Fourth-Largest Cryptocurrency
  • Trump Declares Victory – What will the US Crypto be?

© 2023 CoinCulture. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Please enter and activate your license key for Cryptocurrency Widgets PRO plugin for unrestricted and full access of all premium features.
  • bitcoinBitcoin(BTC)$103,141.003.63%
    BITCOIN
    24H : 3.63%
    Volume : $52,531,855,909.00
    Marketcap : $2,047,974,680,651.00
  • ethereumEthereum(ETH)$2,413.4824.92%
    ETHEREUM
    24H : 24.92%
    Volume : $48,806,162,025.00
    Marketcap : $291,365,867,252.00
  • tetherTether(USDT)$1.000-0.01%
    TETHER
    24H : -0.01%
    Volume : $109,067,515,413.00
    Marketcap : $149,738,151,045.00
  • rippleXRP(XRP)$2.387.64%
    XRP
    24H : 7.64%
    Volume : $5,973,193,620.00
    Marketcap : $139,185,017,681.00
  • binancecoinBNB(BNB)$634.642.93%
    BNB
    24H : 2.93%
    Volume : $1,477,592,218.00
    Marketcap : $92,567,324,227.00
  • solanaSolana(SOL)$167.049.37%
    SOLANA
    24H : 9.37%
    Volume : $8,270,262,598.00
    Marketcap : $86,332,028,758.00
  • usd-coinUSDC(USDC)$1.0000.00%
    USDC
    24H : 0.00%
    Volume : $18,223,267,806.00
    Marketcap : $60,706,653,798.00
  • dogecoinDogecoin(DOGE)$0.20612.82%
    DOGECOIN
    24H : 12.82%
    Volume : $2,908,960,463.00
    Marketcap : $30,685,887,609.00
  • cardanoCardano(ADA)$0.79411.08%
    CARDANO
    24H : 11.08%
    Volume : $1,627,742,422.00
    Marketcap : $28,574,050,501.00
  • tronTRON(TRX)$0.2603.49%
    TRON
    24H : 3.49%
    Volume : $1,189,962,330.00
    Marketcap : $24,637,085,459.00

Add New Playlist

No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Business
    • Policy & Regulation
    • Tech
    • People
  • Markets
    • Forecast
      • Ethereum Price Predictions
      • Bitcoin Price Predictions
  • 101 Guide
    • Blockchain Guide
    • Trading Guide
    • Bitcoin Guide
    • DeFi Guide
    • Ethereum Guide
  • Product Reviews
    • Crypto Exchange Reviews
      • CoinSpot Review
      • Swyftx Review
      • Binance Australia Review
      • MEXC Review
      • BitMart Exchange Review
      • Bybit Australia Review
      • CoinSpot Mastercard Review
    • Exchange Comparisons
      • CoinSpot vs Swyftx vs Binance
      • Coinspot vs Binance
      • Crypto.com vs. Binance
      • CoinSpot vs Kraken
      • Swyftx vs Coinbase
  • Contact
    • About Us
    • Submit Press Release
    • Submit Querry
    • Submit Guest Post
  • Crypto Wiki

© 2023 CoinCulture. All rights reserved.