**BTC Mining Difficulty Continues to Rise: How Will it Affect the Industry?**
Bitcoin mining difficulty has been steadily increasing for some time. As of 2023, it has already set four new all-time highs and it does not seem to stop there. According to data from CoinWarz, the difficulty level is expected to increase from 78.89 trillion hashes to 48.53 trillion hashes tomorrow. Every 20,019 blocks, which is approximately two weeks, the difficulty level is adjusted to maintain a block production rate of around ten minutes. This article explores the impact of the rising mining difficulty on the mining industry.
**1. BTC mining keeps getting harder**
As mining bitcoin becomes increasingly difficult, more advanced technology and overall computing power are needed to produce the same amount of bitcoin. This can be tough for miners, particularly during a bear market. With the price now significantly lower than the all-time high of $69,000, some miners are struggling to make a profit and are forced to sell their crypto reserves or shut down entirely.
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However, since the bitcoin price has risen significantly since the start of the year, the revenue of the miners has received a boost, giving them more breathing room. The Las Vegas-based miner CleanSpark has indicated that the increasing mining difficulty will likely lead to industry consolidation. Talyr Monnig, CleanSpark VP of mining technology, said:
“Unless there is a major price increase, I think that smaller mining companies will be acquired by larger companies or close their doors.”
**2. Impact on mining industry remains limited**
Tim Rainey, treasurer of Greenidge Generation Holdings, a New York-based data center for cryptocurrency and energy production company, stated that no significant changes are expected with the increase in difficulty tomorrow, as most miners will still be able to reach their hash rate.
The hash rate is a gauge that indicates the average price a mining machine makes daily on the Bitcoin network. He added that this is more related to bitcoin’s recent price rise. Therefore, as long as the bitcoin price can maintain its upward trend somewhat, the rising mining difficulty will not have a significant impact on the entire industry.
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The increasing mining difficulty is putting a lot of pressure on miners, but it may be a blessing in disguise for the industry, as it could lead to consolidation and the closure of smaller, less efficient mining companies. Although the impact of the rise in difficulty on the mining industry will be limited, this could change if bitcoin’s price experiences a significant downtrend. Ultimately, the mining industry must adapt and evolve to remain competitive in the ever-changing world of cryptocurrency mining.