A large number of mining machines was shut down due to a drop in the cost of the battle. When the cryptochange price drops, mining becomes less advantageous in relation to the received reward and the cost of electricity consumed by the equipment. This adds to spending on other services such as the Internet and maintenance of mining equipment and equipment.
Due to the difficulty of setting up Bitcoin network mining, miners who keep their machines working will receive more rewards in the BTC, Whereas in the future it could also achieve higher profits compared to a possible increase in the cost of the battle. However, each miner must calculate whether it is appropriate to continue working at full speed or whether it is preferable to reduce their production.
Yesterday, the Mine Pool announced that from mid-November, between 600,000 and 800,000 Bitcoin miners are shut down. According to the publication, the main reason for the price reduction is cryptochange, which leads to a decrease in performance or hashrate networks.
According to Blockchain Block Explorer, hashrate Bitcoin dropped from 54 EH / s, at the beginning of November to 41 EH / s at the time of writing.
Adjustment of heavy mining
Differences like the one just mentioned hashrate they cause further network changes due to Bitcoin's first-class element: difficulty setting. Every 2016 blocks Bitca's mining difficulty is adjusted to increase or decrease performance, so network traffic is unaffected.
When less miners work, hashrate and the production of blocks and the emission of bits is decreasing. Likewise, the larger the number of miners, the greater it is hashrate and networking is accelerated.
Difficulty setting is responsible for stabilize or balance the availability of mining and the difficulty of mining, so that the average block separation time is maintained in the single block standard every 10 minutes, as expressed in the Bitcoin White Paper.
These changes of difficulty directly affect the reward that each miner earns for his work. When the difficulty increases, the performance of the mining equipment decreases; If the difficulty is the one that decreases, the team's performance increases. The second scenario described brings miners a greater reward because they will prevent fewer blocks, and rewards will be more frequent.
In this regard, it should be noted that Bitcoin miners are not the only ones facing this scenario. Before the generalized fall of the whole market, miners of all cryptocurrences who are using the Work Exam (PoW) are in the same position as the originators of cryptocurrency. Ether (ETH), zcash (ZEC), monero (XMR), siacoin (SC), decred (DCR) and ethereum classic these are some of the cryptographic currencies whose market value has also fallen; therefore, those who undermine them are now forced to reassess their profits at current prices.
The miners who are less affected by the fall of the cryptoactive market are people who carry out this activity in places where electricity is very economical or have subsidies, allowing them to continue without great worries, trying to make use of this reduction in the difficulty of mining.
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