The Bitcoin blockchain network experienced its biggest mining difficulty adjustment in over two years on June 17. Surprisingly, the hash rate of Bitcoin has not handed over by a big margin.
The response of miners towards the trouble change is thought about to be positive until now, as the hash rate is currently beginning to recoup. Information from Blockchain.com shows that since June 11, the hash price of the Bitcoin network boosted from 101 million TeraHashes per second to 105 million TH/s.
Miners continue to mine Bitcoin (BTC) regardless of a 14.95% rise in problem. Theoretically, the trouble adjustment should cause a decrease in mining activity, as the event boosts the quantity of computing power required to extract BTC. In a short amount of time, miners see a surge in operational expenditures and additional external costs to mine. The positive trend of the hash price may indicate four things:
- Miners are confident in the medium-term price trend of Bitcoin;
- Miners are profitable despite the difficulty adjustment;
- Miners remain in a monetarily safe position;
- There is much less selling pressure from miners on the Bitcoin exchange market.
On-chain data from ByteTree reveals miners are not selling more than they mine after the difficulty adjustment, suggesting that their operations are still profitable, specifically large mining facilities in the Sichuan district of China that are taking advantage of low electricity rates because of the rainy season.
It substantially decreases the likelihood of a mining death spiral, as lots of miners continue to be in a strong placement after the change.