Bitcoin mining difficulty is also known as the bitcoin blockchain network difficulty. According to blockchain.com, the difficulty is a measure of how difficult it is to mine a Bitcoin block, or in more technical terms, to find a hash below a given target. A high difficulty means that it will take more computing power to mine the same number of blocks, making the network more secure against attacks. The difficulty adjustment is directly related to the total estimated mining power estimated in the Total Hash Rate (TH/s) chart.
And why do miners care a lot about the bitcoin mining difficulty? That’s because miners rely on the block mining reward to cover the ongoing mining costs like electricity fees. since the bitcoin price moves sharply, mining revenues come unexpectable in a short term, but for miners, the mining difficulty adjustment keeps bitcoin block frequency steady, no matter the amount of total network hashrate.
What happened in May: New data shows the difficulty of Bitcoin (CRYPTO: BTC) mining is on the upswing. According to data from BTC.com, the level of difficulty to mine the cryptocurrency increased by 6% on Saturday. According to a report from Decrypt, it’s the first increase in difficulty for Bitcoin miners since the digital currency began to crash in May.
Why it’s essential: The rate of difficulty has plunged since peaking at a record high in mid-May. The level continued to decrease in June and July after a crackdown on miners in China, causing them to leave the country or sell their mining machines. Chinese miners were responsible for 65% of the Bitcoin network’s hash rate at the time.
The most significant drop in mining difficulty occurred on July 3, when the rate fell by 28%. Followed by another drop of 4.81% on July 18.
What’s next: The increasing rate of difficulty reported today indicates more mining machines are back online. The difficulty increases as more minors try to earn Bitcoin, which requires computing power to validate transactions on the network. BTC is priced at over $41800 at the time of publication, after marking a low of $28600 on June 22.
The bitcoin mining difficulty dropped after China's crackdown on mining operations and thanks to the sudden decline in many Chinese miners had lessened the competition in confirming blocks, the existing miners on the network gained more profits.
Best way to invest Bitcoin for new investors – Cloud Mining
This phenomenon also makes investors outside the circle have the idea of wanting to invest in digital currency. However, in the case of an increase in the price of bitcoin, the way to obtain bitcoin through purchase or transaction seems to be a bit expensive, and the method of mining through bitcoin blocks and obtaining rewards has become the first choice of more investors.
In 2021, how to earn Bitcoins from block mining? Individual miners can start mining at home started by purchasing all the technical hardwires required for mining, but for those who do not have a technical background and lack sufficient funds to purchase Bitcoin mining machines through trusted providers, mining at home seems difficult.
A cloud mining service provided by the OXBTC platform is a perfect choice for new cryptocurrency investors.
Cloud mining operations are mining farms — data centers dedicated to mining — that sell or lease hashing power to cryptocurrency miners. The essence of the service is that a third party hosts mining equipment and provides access to the rewards associated with the equipment. For those who are unfamiliar with technology and don't like trouble, cloud mining is a perfect solution.
No need to deploy the mining machine yourself. Just purchase the product online, and you can enjoy the professional services provided by OXBTC.
If you are interested in cloud mining or bitcoin mining, you can go visit oxbtc.com or download OXBTC mining APP from Google Play to learn more.