Bitcoin Miners Observe Big Boost In Revenues After Difficulty Decrease

The recent negative mining difficulty adjustment has given a large boost to miners’ revenues

https://bitcoinist.com/bitcoin-difficulty-adjustment-boosted-miners-bottom/

As per the latest weekly report from Arcane Research, the BTC miner revenues have seen a 15% growth over the last seven days alone.

A relevant indicator here is the “mining hashrate,” which measures the total amount of computing power connected to the network.

This metric can be thought of as a representation of the competition present among the miners. Thus, rising values of the metric imply an increasing competition between the individual mining machines.

There is a feature of the BTC blockhain that the “block production rate” (that is, the rate of hashing new blocks) has to aim for a constant value. However, whenever the hashrate changes, so does the ability of miners to produce blocks.

For example, a rise in the hashrate means more rigs are present on the network now, and so the block production rate gets faster. To counteract this, the Bitcoin chain increases what’s known as the “mining difficulty.”

After such an adjustment takes place, the miners find it harder to hash transactions and so their rate is slowed down to the required level.