The cumulative performance of mining resources dedicated to bitcoin mining has risen to an all-time high. This happened after the update of the Ethereum blockchain, as a result of which space and energy resources were freed up in mining data centers, and the profitability of bitcoin mining decreased.
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Over the past two weeks, Bitcoin mining difficulty has risen by 13.6%, the biggest two-week adjustment in the indicator since May last year, when Chinese miners began to shut down. The dynamics is also associated with the cessation of mining of the Ethereum cryptocurrency according to the classical model after the update. Mergeleads the opinion of analysts agency Bloomberg.
As a result of the technical update of the Ethereum blockchain, the classical mining was replaced by the distribution of digital “coins” between the owners of the cryptocurrency who left the pledge, who began to verify the transactions. As a result, Ethereum miners had to take their hardware off the network, and the blockchain itself reduced its carbon footprint by 99%. The freed up resources in mining data centers are now occupied by bitcoin miners. According to Ethan Vera, COO of crypto mining company Luxor Technologies, 4% of the current performance of the Bitcoin network was formed as a result of the shutdown of the Ethereum resource.
The increase in productivity means a decrease in income for miners, who are already suffering from the fall in the price of the largest cryptocurrency and the growth of energy tariffs: the higher the mining performance, the less each participant in the network receives, since the reward is fixed.
The energy consumption for mining Ethereum before the update was about half of the energy resource for mining Bitcoin. The space and volumes of electricity released in data centers are gradually switching to bitcoin, but not equipment: Ethereum was mined on video cards, and bitcoin mining is profitable only with the use of specialized computers – ASIC devices optimized for the algorithm of the largest cryptocurrency.
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