Bitcoin miners best profitability cycle since last halving

Bitcoin miners best profitability cycle since last halving

By ircrp | ircrp | 7 Nov 2020


 

Further to the article highlighting that the sudden Bitcoin Network hash rate loss is expected to have a big impact on the next difficulty adjustment in the first weeks of November of 2020, the adjustment appears to be materializing into miners revenue jumping back to the levels we haven't seen since the halving. 

  • To recap the current period of miners prosperity did not come at no cost, in fact the network first of all has suffered quite substantially in terms of hash rate dropping down to the lows we haven't seen in years due to what many assume was the migration period post the rainy season in China.
    • The fall from 150 EH/s on 24th of October to the lows of 98EH/s by 27th of October has resulted in clogging up the network for several days with spike on the fees and the network constantly being filled up by more than 100,000 transactions.
  • Although the hash rate has not noted a remarkable bounce back and still remains in the regions of 125 EH/s in the past days, struggling to make it back to the regions of 150 EH/s we've fallen off since October, the network appears to be no longer clogged up and in fact appears to be quite healthy.
  • The beauty of the Bitcoin's Network recovery is the built in difficulty adjustment which happens on 2 week epoch cycles (or 2,016-block periods) which during the current cycle beginning on 3rd of November has observed the biggest reduction in the past 9 years with the difficulty reducing by 16% 
  • With some of the migrations getting nearer completion in the next few weeks and perhaps more miners jumping onboard to enjoy the time period of vastly increased profitability, we could perhaps expect the hash rate to bounce back further and the upcoming adjustments being of increased difficulty.

 

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