Bitcoin (BTC) The problem of mines is diminishing, but the miners are turning off – What's going on?


One of the most direct ways to own Bitcoin is through mining, but this entails some costs in terms of power and time. When the hash power of the network increases, the difficulty of extraction also increases, as a surge of the hash rate indicates an influx of miners on the network.

Falling of difficulty in Bitcoin mining

Since October, the difficulty in bitcoin extraction has declined, which means that the crypto hash rate has decreased due to the miners who discontinued their equipment. This is mainly due to the sudden decline in the price of Bitcoin. The price seems to have fallen below the figure a miner would have deemed useful to balance in a draw. As such, the miners are closing their BTC mining operations or redirecting their mineral resources to other encrypted ones such as BCH and BCH SV because the BTC mining is no longer attractive.

Every two weeks, the Bitcoin algorithm for hashing difficulty is adjusted to maintain normal 10-minute blocking times. Three adjustments have occurred since October and a further adjustment of -13% will take place within the next 3 days. This is the first time that a major negative adjustment has taken place since 2011.

Rare event

Historically, it has been very rare for Bitcoin data mining difficulties to register a decline because the network has always experienced a sustained hash rate. However, the fall in the price of BTC exacerbated by the rise of BCH and BCH SV has shaken the Bitcoin boat in a negative way.

For example, at the beginning of the BCH fork on November 15th, Roger Ver of announced that the mining company would abandon Bitcoin and redirect its resources to the BCH extraction. Bitmain did the same. With the withdrawal of the world's biggest Bitcoin miners, Bitcoin hash has undergone an immersion and has come to affect even more its market value.

BTC landfill?

Another factor that may have led to this is the recent hash war between BCHABC and BCHSV after the BCH fork. In addition to the two camps that direct all their resources to extract their side of the chain, some actions related to Bitcoin sales may have had a hand in its fall. On November 14, a day before BCH's fork, Craig Wright threatened to sell a lot of Bitcoins to finance BCHSV's mining operations.

In a Tweet, told the BTC miners that they wanted my BCH that they would have to sell Bitcoin to finance the mining sector. A huge sell-off by BTC would be similar to a landfill and would effectively accumulate Bitcoin. This could be one of the reasons why its price has fallen by a huge margin and sent hundreds of packaging to the miners.

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