After the worst short-term outage in the history of the Internet earlier this year, the Bitcoin mining business is on the path to a full recovery, and miners are reaping income returns.
On its October 4th Chain last week According to the report, on-chain analytics provider Glassnode reported that although 50% of the network’s computing power went offline in May after China cracked down on the industry, Bitcoin’s computing power has basically recovered.Hash rate measures the total computing resources of a node Proof of Work Network.
Glassnode asserts that hash rate and mining difficulty—a measure of competition among miners seeking to resolve the next block of the network—are on “a consistent recovery path.” Cointelegraph reports Difficulty dropped by 28% in early July.
It has increased by 39% since late July, and mining difficulty has almost returned to its pre-China level. It is expected that additional upward adjustments will be made this week. Glassnode also reported that the difficulty zone had its strongest reversal since December 2018.
As Observed According to Chinese media Wu Blockchain, on October 5, the difficulty of Bitcoin increased by 4.71% at block height 703,584. This is the sixth consecutive increase since July 31.
Although the block reward has been reduced by 50% from 12.5 BTC to 6.25 BTC in the halving event in May 2020, mining profitability has improved significantly since then.
Glassnode pointed out that since the Bitcoin halving in May 2020, the current mining profitability of USD 40 million per day has increased by 275%, which is an increase compared to the low point of approximately USD 6 million to USD 8 million in June 2020. About 630%.
The report added: “Despite huge changes in the mining market, multiple deep price adjustments, and the halving event in May 2020, the value of Bitcoin block rewards continues to rise, creating impetus for market adaptation, innovation and recovery.”