The bitcoin mining operation is on the verge of a full recovery after the largest disruption in the network’s history earlier this year amid a crackdown by Chinese authorities.
In the report Week on chain On October 4, on-chain analyst Glassnode reported that Bitcoin’s hashrate has largely rebounded after 50% of the network’s hashing power went offline to get out of in May.
Glassnode claims that both hashrate and mining difficulty are on “a consistent path to recovery.” Mining difficulty fell 28% in early July but has increased 39% since late July, almost to the level before China kicked miners out of the country.
Bitcoin difficulty increased 4.71% on October 5th at block height 703,584. This is the sixth consecutive increase since July 31st.
Bitcoin mining difficulty | Glass knot
Although the block reward was reduced by 50% from 12.5 BTC to 6.25 BTC during the halving in May 2020, the profitability of mining has increased significantly since then.
Glassnode notes that the current daily mining profit is $ 40 million, 275% more than before Bitcoin’s halving and about 630% from the June 2020 low.
Bitcoin mining revenue | Glass knot
“Despite the drastic changes in the mining market with many deep price corrections and even the halving in May 2020, the reward value of the Bitcoin block continues to rise, giving the market momentum to adapt, innovate and recover,” the report added .
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According to Cointelegraph