Bitcoin Miners Anticipate Relief: Upcoming Difficulty Reduction Projected After August’s Challenges

While Bitcoin experienced two difficulty adjustments upward last month, the next one, expected around September 6, 2023, is estimated to be a reduction. Currently, the network’s hashrate is about 367.58 exahash per second (EH/s), with an average of 380.90 EH/s over the past ten days.

After a Rocky Month, Bitcoin Miners Poised for Potential Difficulty Decrease

Bitcoin miners have faced challenges recently because the price of BTC dropped last month and the difficulty increased twice, totaling a 6.29% rise. The adjustment on Aug. 22 set the difficulty to a record 55.62 trillion. With five days remaining until the next adjustment, projections suggest miners might see a decrease in the upcoming period. Data from two independent sources indicates a potential decline of 4.42% to 4.9%.

Statistics from bitinfocharts.com show that since August 22, block times have been longer than the typical 10-minute average. During this period, the average block time briefly fell below the 10-minute mark on August 29. If block times slow and 2,016 blocks take more than the usual two weeks to mine, a difficulty reduction occurs to stabilize the situation. If 2,016 block rewards are found in less than the usual two weeks, the difficulty increases.

Metrics from August indicate that miners earned less than they did in July in terms of rewards and transaction fees. In July, miners collected $865.26 million from fees and new BTC block rewards. However, in August, Bitcoin miners amassed only $807.01 million from rewards and fees. Additionally, the current hash price stands at $60 per day for every petahash per second (PH/s) produced, a low not observed since the end of the previous year.

While both price and difficulty have posed challenges to BTC miners in recent weeks, the hashrate has remained consistent and robust. This stability might be attributed to the significant introduction of new machines this year that offer greater terahash per second (TH/s) and improved energy efficiency measured in joules per terahash. While it costs $60 per day for every petahash per second (PH/s) produced, the current TH/s hash rate stands at about $0.06046 a day. This is 6.20% lower than August’s peak of $0.06446 a day per TH/s.

What do you think about the challenges bitcoin miners faced in August? Do you expect a better September? Share your thoughts and opinions about this subject in the comments section below.