Bitcoin miners are likely to take another break this week as the network’s mining difficulty is estimated to drop tomorrow. Bitcoin’s Difficulty Adjustment Algorithm (DAA) changes every two weeks, and during the last DAA change, the difficulty dropped by 4.33%. Currently, at 235 exahash per second (EH/s), the network’s DAA is expected to be 0.51% lower than today’s metric.
Bitcoin mining difficulty change expected to drop this week
June 7, 2022, one day away from the next DAA change, which is expected to drop at the start of the shift. The DAA changes every 2,016 blocks or roughly every two weeks, and after block height 735,840, it is the highest difficulty level on record at 31.35 trillion.
Essentially, if blocks are mined faster than expected, the DAA increases, and if blocks are mined at a slower rate within two weeks, the difficulty decreases. After hitting an all-time high (ATH) of 31.35 trillion, the last DAA transfer dropped 4.33% at block height 737,856, bringing the current difficulty parameter down to 29.90 trillion.
It is much easier to find Bitcoin block rewards when the difficulty drops, and it is harder for Bitcoin miners to find BTC block rewards when the DAA metric increases. The DAA relocation is over 160 blocks away, expected to change tomorrow, June 8, 2022.
If the expected 0.51% drop materializes, the difficulty will reach 29.75 trillion within two weeks of the DAA change. Bitcoin’s hash rate has been running fast after hitting an ATH of 275 EH/s on May 2, but it hasn’t run faster than the lifetime record since then. In fact, hashrate temporarily fell below the 200 EH/s region as prices fell in late May.
While the DAA is expected to move downward, over the past three days, 445 BTC block rewards have been mined. Foundry USA captured the most blocks over the past three days as it found 105 of the 445 BTC block subsidy rewards.
Foundry’s computing power accounts for 23.6% of global computing power or 49.70 EH/s of processing power. Antpool is the second largest mining pool in terms of hash rate, as the pool received 78 block rewards in 72 hours. Antpool has 36.92 EH/s dedicated to the BTC blockchain, equivalent to 17.53% of the global hash rate.
There are 14 known mining pools dedicated to providing computing power to the BTC chain, and 0.45% of the global computing power or 946.74 petahash per second (PH/s) belongs to unknown or invisible miners. Profits dropped significantly, as the most powerful ASIC mining rig, Bitmain’s Antminer S19 Pro+ Hyd. 198 terahash per second (TH/s), an estimated $9.80 per day.
The figure includes a payment of $0.12 per kilowatt-hour (kWh), which currently stands at 29.90 trillion. The Microbt Whatsminer M50S, with 126 TH/s and electricity cost of $0.12 per kWh, can earn an estimated $6.78 in BTC profit per day. At current BTC exchange rates, many ASIC mining rigs made before 2021 will make $5 or less per day in profit.
What do you think of the current state of Bitcoin mining and the upcoming difficulty adjustment algorithm changes expected this week? Let us know what you think about this topic in the comments section below.
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