The Bitcoin (BTC) mining difficulty fell to 146.7 trillion on Friday as the network hashrate, the average of the total computing power dedicated to securing the decentralized protocol, hit an all-time high of over 1.2 trillion hashes per second.
BTC mining difficulty is down by about 2.7% from the all-time high difficulty level of over 150.8 trillion reached during the previous adjustment period, according to CoinWarz.
Bitcoin mining difficulty drops. Source: CryptoQuantHowever, network hashrate hit an all-time high on Tuesday, and remains elevated above 1.2 trillion, despite a small dip from Tuesday’s all-time high, data from CryptoQuant shows. CoinWarz also forecast:
The rising hashrate signals that miners will have to expend ever-greater computing resources to add blocks to the Bitcoin ledger, placing even more pressure on beleaguered miners, who are grappling with trade policies, reduced block rewards, and competition.
Related: Bitdeer doubles down on Bitcoin self-mining as rig demand cools
Miners pivot to alternative revenue streams, but potential supply chain issues loom
Mining companies continue to search for alternative revenue streams to shore up shortfalls from mining digital currencies, including diversifying into AI data centers and other forms of high-performance computing.
Core Scientific, Hut 8, and IREN all re-allocated resources toward AI data centers in 2024 to boost profits and reduce reliance on revenue generated from crypto mining.
However, the pivot to AI data centers has created tension between miners and the AI infrastructure providers, as both energy-hungry industries compete for access to cheap energy sources to power their operations.
Despite the addition of new revenue streams, the mining industry continues to face regulatory challenges and fomenting supply chain issues, the latter of which stems from US President Donald Trump’s sweeping trade tariffs.
Tariffs increase the cost of acquiring mining hardware in jurisdictions that are subject to tariffs on those products, putting miners in those areas at a competitive disadvantage to miners who can acquire rigs without the added tariff costs.
Moreover, if trade tensions between the US and China continue to grow, export controls on computer processors, chips, and other electronics could make the hardware more difficult to acquire.
Magazine: 7 reasons why Bitcoin mining is a terrible business idea
Source: https://cointelegraph.com/news/bitcoin-mining-easier-not-long-hashrate-roars-back?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
