Futures Friday: Bitcoin Hash and Halving
Bitcoin hash rate dropped 16% recently. What does it mean for the mining industry? Mining difficulty explained by BTCMEX.
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Several days ago, on March 26, 2020, the Bitcoin community has seen the biggest mining difficulty percentage drop in the last 9 years, with the adjustment of nearly 16%. The mining difficulty is the indicator of the competition among Bitcoin miners. The network adapts to the changing mining power on the network, keeping its issuance rate at a fairly steady level.
The Bitcoin halving is a couple of months away. The event is programmed to slash the block reward by half and is expected to happen in mid-May 2020.
There are predictions that some of the higher-cost miners may drop out after the halving, but the mining companies stabilizing and building for the foreseeable future. Only companies that are better prepared and have access to additional capital and higher profit margins are able to stay on the network even with reduced profits or temporary losses.
Bitcoin is currently trading in a range of $6,000 — $7,000 and is still significantly down in comparison with the price-performance just several months ago. In correlation with the stock markets, the price has tanked almost twice after the BTC/USD 10k spike witnessed on February 9, 2020.
Please note, that the article is a part of BTCMEX Blog, the views and opinions expressed here are the contributing author’s only, and do not necessarily represent the views of the company.
Julia Bulakh for BTCMEX