Production levels have dropped as people sell their Bitcoin holdings to increase liquidity.
Because of the asset’s stagnant price, miner profits are already precarious.
The hashrate of Bitcoin mining hit a new record high last week, surpassing 300 EH/s. It was also announced at the time that mining difficulty was going up this week. Because of the newest update that went into effect on Monday, Bitcoin mining difficulty has now reached a new all-time high, having broken the previous record of $35.61 trillion.
The mining difficulty of Bitcoin has decreased after the previous modification. The preceding four occurrences, however, showed that the difficulty tended to fluctuate between 0.63% and 9.26%. The result this time was a massive increase of 13.55 percent.
BTC.com shows that this spike is the highest since May 13, 2021. However, the figure was almost similar in August of the previous year, at 13.24%. As a result, the time required to mine a single Bitcoin block on the blockchain has increased to roughly 8 minutes and 49 seconds now.
Hard Time For Miners
On the other hand, additional hash power entering the network means that the cost of producing one Bitcoin will rise as a result of the increased difficulty. Because of the asset’s stagnant price, miner profits are already precarious, and this just makes things worse. That should put the mining sector under further financial strain.
Problems with electricity have made mining even more difficult. Production levels have dropped as people sell their Bitcoin holdings to increase liquidity.
Core Scientific, a mining firm located in the United States, recently sold 1576 Bitcoins for an average price of $20,460. On the other hand, it only mined 1,213 BTC for itself in September, or an average of 40.4 BTC daily. Moreover, new research shows that the macro pattern is consistent, with miners continuing to spend more Bitcoin than they earn.