Bitcoin (BTC) miners may get a respite in a week or so, on or around December 5, 2022, when the next difficulty retarget projected to be much lower. According to estimates, the next difficulty retargeting might be reduced by 8% to 8.5%.
According to most estimations, the adjustment will take place in the early hours of next Tuesday and will be between -8.5% and -8%. At the time of writing, Luxor had it at -8.4%, Braiins had it at -8.4%, and Bitrawr had it at -8.3% and -8.0%.
These figures are liable to vary over the next several days, depending on how many machines are turned on and off, but they nevertheless provide a good picture of the current condition of mining economics.
Currently, the difficulty change appears to be the highest drop in 2022 if it exceeds the 5.01% drop reported on July 21. Miners are presently facing the greatest difficulty level ever recorded, while Bitcoin values are 76% lower than the all-time high ($69,000) set on November 10, 2021. At the time of writing, BTC is trading at $17,016.
Solving the mathematical puzzles for valid block creation requires huge amounts of computational power. Because the difficulty is rising continually, miners join forces in Bitcoin mining pools and solve the mathematical puzzles together. The first individual miner or the mining pool that finds the right hash gets the block reward.
Usually, block rewards consist of new coins or tokens native to a blockchain network such as Bitcoin. In a mining pool, block rewards are split among participants in proportion to their share of computing power in the mining pool. This way each participant is adequately invested in the process.
Mining difficulty in the Bitcoin network is adjusted automatically after 2,016 blocks have been mined in the network. An adjustment of difficulty upwards or downwards depends on the number of participants in the mining network and their combined hashpower.
Margins in the business have shrunk as a result of increased electricity costs and falling Bitcoin prices. And some companies are cash-strapped and in debt. Companies are suffering, with Core Scientific, the largest by hash rate, announcing that it may have to declare bankruptcy.
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