In the near future, the gradual return of Chinese bitcoin miners to the network is expected to increase bitcoin mining difficulty.
According to BTC.com data, Bitcoin mining difficulties are expected to rise by a little more than 5% this weekend, following four straight declines since May.According to the data, difficulty recently dropped by 4.8 percent to 13.67 trillion at block height 691,488, the lowest level in about 18 months.
This metric measures a miner’s “difficulty” in mining Bitcoins. The difficulty level is adjusted every 2,016 blocks as mining hashrate changes. This process takes about two weeks.
In general, as hashrate increases, so does mining difficulty. Mining difficulty may rise as hashrate recovers, but this is not guaranteed.
The global Bitcoin hashrate, as measured by Blockchain.com, has been gradually recovering since July 3. Since mid-May, the total number of hashes per second is thought to have dropped from 180.67 million to 84.79 million, the lowest level since September of this year.
The hashrate was 104.09 million TH/s on Thursday.
Meanwhile, the Ethereum network’s hashrate is returning to normal. The hashrate dropped to 477.5 TH/s on June 26 from 643.8 TH/s on May 20. Despite this, the reading has been steadily increasing since late June, reaching nearly 560 T/s on Thursday.
Miners are returning to their jobs in the mines.
The expansion of Chinese mining operations is thought to be contributing to the rise in hashrate. A growing number of cryptocurrency miners are leaving China in favour of countries that appear to be more tolerant of cryptocurrency mining regulations and provide relatively cheap electricity.
Initially, Kazakhstan, North America, and Northern Europe were popular destinations for Chinese miners forced to leave their jobs.
According to a statement released Wednesday, BIT Mining has deployed 3,819 Bitcoin mining machines with a total hashrate capacity of 172 peta hashes per second at data centres in Kazakhstan. According to the company, over 4,000 more have been delivered and are ready to go online.
BIT Mining, formerly 500.com, announced last week that it had decided to sell its online sports lottery business. The New York Stock Exchange-listed company announced earlier this week an agreement to purchase 2,500 new Bitcoin mining machines worth approximately US$6.6 million.