Most crypto experts believe that Bitcoin mining will get very difficult as mining commences after the Chinese crackdown in May. There has been quite a rapid expansion of facilities in North America with several miners returning from the Chinese mines through hosting sites that have been set up overseas. The above-mentioned factors have proven to be the major catalyst behind the increasing difficulty of crypto mining- as traders expect.
Bitcoin Mining Will See A Far Higher Difficulty Rate
Bitcoin mining difficulty is simply a metric that describes how difficult it is to mine a block of crypto and receive rewards in BTC. Any increase in the difficulty of mining will require the miner to use more computing power to earn BTC- which in turn reduces the profit margin of the miner. Also, the more machines start mining online, the higher the mining difficulty. But in retrospect, this also secures the network of BTC.
Bitcoin mining difficulty has been seeing a continuous decrease since the central government of China asked for local authorities to stop all mining operations throughout the country on the 21st of May. The bi-weekly difficulty level that was posted on the 17th of July shows yet another downward adjustment ever since the crackdown. Luxor, a Seattle-based mining facility has stated that for the first time since the hash rate went lights out, miners are anticipating the next week to yield far more positive results.
Interestingly, even before the Chinese government imposed a crackdown, several North American Bitcoin mining companies like Riot and Marathon were already looking towards expanding the operations of the cryptocurrency due to the historic bull run of BTC in the early part of 2021- as stated by Nick Hansen, the CEO of Luxor. Marathon stated that it would be entering a binding letter of intent with Compute North- a miner hosting services provider to run above 73,000 BTC miners as part of the 300 megawatts data center in Texas.
