The difficulty of mining a bitcoin block fell by 5% yesterday as miners pull their machines from the network due to heatwaves across the U.S. egreechee reports
"The difficulty was reduced as American miners turned off their machines for significant periods over the past two weeks as electricity prices soared due to a heatwave," said Jason Mellerud, senior researcher at Arcane Research.
It's the third consecutive decrease in mining difficulty – the first time this has happened since four straight declines one year ago as Chinese miners packed up their rigs thanks to that country's ban on bitcoin mining. "The initial drop in the hashrate at the middle of June was likely caused by the plummeting BTC price, Mellerud continued."But the second drop at the beginning of July was likely caused by miners powering down in response to high electricity prices."When demand increases over a certain threshold, some miners can bring in more revenue by selling their contracted power to the grid as opposed to using it to mine bitcoin.
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