Lower Cost Bitcoin Miners Increase Market Share After Halving: Bernstein Analysts ⋆ ZyCrypto
The post Lower Cost Bitcoin Miners Increase Market Share After Halving: Bernstein Analysts ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     In a dramatic turn for the Bitcoin mining industry, a big drop in Bitcoin’s mining difficulty has paved the way for lower-cost miners to grab a larger market pie. This significant shift, the most substantial since the crypto winter of 2022, is reshaping the competitive landscape and highlighting the critical role of operational efficiency in the mining sector. A recent report from brokerage firm Bernstein delves into this fascinating trend, exploring how key players leverage these changes and the implications for the broader cryptocurrency market. Bitcoin Mining Difficulty Plummets Bitcoin mining difficulty, a measure of how hard it is to mine new Bitcoins, recently experienced a noteworthy 6% decline. This significant drop indicates miners need fewer computational resources to mine new Bitcoin, which has wide-ranging effects across the mining sector. According to data, Bitcoin mining difficulty declined 6% on May 10, from 88.1 trillion hashes to 83.15 trillion hashes. This is the most significant percentage decrease since July 2021, when it fell by 28% to 14.36 trillion hashes. The mining difficulty metric adjusts automatically to accommodate fluctuations in the Bitcoin network’s total computing power. One of the most striking outcomes of the decline in mining difficulty is the surge in market share for lower-cost miners. Bernstein’s report highlights how miners with lower operational costs have rapidly expanded their presence since the Bitcoin halving event. Advertisement   Last month, Bitcoin went through its fourth halving event. This occurrence, which happens roughly every four years, slashed the rewards miners receive for processing new blocks on the network by half, from 6.25 BTC to 3.125 BTC per block. Bitcoin miners, who create new coins and ensure the network runs smoothly by processing transactions, now face a tougher challenge to stay profitable. Reduced rewards and increased mining difficulty have led many…
Filed under: News - @ May 27, 2024 12:16 am