We've all heard that Bitcoin's mining difficulty keeps going up, right? This is due to both environmental factors and how Bitcoin is designed.
When we mention the environment, inflation is a big issue in the global economy right now. Energy prices are skyrocketing, which makes mining more expensive. Plus, mining hardware needs to be more powerful to keep up with the rising difficulty. So, is this actually a good thing for miners? Or does the increasing difficulty hurt them in the long run?
Is mining difficulty beneficial for miners?
19 replies 271 views
Starting in October 2025, the hashrate will fall, and the difficulty will also fall. I think there will be a direct correlation between profit and difficulty. If the Bitcoin price doesn't rise, new equipment won't be purchased as quickly as before.
I believe that the Halvig, which occurs once every 4 years, affects the entire equipment market more than most other factors.
vault_nodeFull Member
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#3May 28, 2019, 11:30 PM
The offset is the fact that when a number of miners leave the pool, the difficulty falls such that the existing miners will find it easier to mine using the same hashpower that they were using to mine previously. So they will make bigger profit. This is the reason mining will not stop but when old miners leave, new miners are going to come in and join the network.
Costs are there to consider, but fighting the hashpower is the big deal here. The difficulty fluctuates and you would have be someone who is monitoring that and starting your miners accordingly. But I never found the funds nor the fun in this.
Bitcoin mining difficulty is recalculated every 2016 blocks, which, if you compare it to time, is roughly every 14 days. Therefore, if some equipment is shut down, it will be more difficult for others to find a new block until the difficulty is recalculated. We've already seen this happen, with multiple equipment shutting down simultaneously.
lol @Crypto Library you asking if difficulty is good for miners
it's like asking if gravity is good for skydivers it just is
the network adjusts that's the whole point
if you can't handle the heat get out of the kitchen noob
the only miners that survive are the ones who are efficient or have cheap power
everyone else gets rekt eventually
it's not about being good or bad for miners it's about bitcoin being bitcoin
hodler2019Legendary
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#6May 31, 2019, 06:15 AM
There are more in depth complexities but you have a lot of the truth.
Difficulty is needed .
Proper in balance Difficulty is more important.
Ie I invent a Philly willy miner. It does 1000eh on 1 watt.
It costs 10 dollars to make. I would change the entire world of mining in a flash.
The next 2 weeks my 1 watt miner would grab have the blocks.
In 2 weeks the diff would adjust and I would still grab 1/2 the coins.
In 6 or 8 weeks I could add a miner just so I always have 1/2 the blocks.
This would really hurt the balance of mining.
Kind of like if the earth had Jupiter s gravity most life would get crushed.
D4rkFalconSenior Member
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#7May 31, 2019, 06:44 AM
Is mining difficulty actually good for miners? as long that I understand that Mining difficulty is use basic supply and demand when there a lot of people who mined bitcoin than the difficuly is keep rising and vice versa the profitabilty also need a good price for miner to becoma a viable businness.
The negative side "Bitcoin miners experienced one of the toughest profitability environments on record, as profit margins eroded due to the April 2024 halving, which slashed the block subsidy by 50% and macroeconomic developments." - https://id.tradingview.com/news/cointelegraph%3A4023fee53094b%3A0-bitcoin-mining-difficulty-falls-in-first-adjustment-of-2026/
The plus side "Bitcoin mining difficulty drops 11% in largest negative adjustment since China's 2021 ban" - https://www.theblock.co/post/388955/bitcoin-mining-difficulty-drops-11-in-largest-negative-adjustment-since-chinas-2021-ban
Also "Many mining operators have already deprioritized their mining operations (or phased them out entirely) as part of their pivot to serving as data centers for artificial intelligence (AI) and other high-performance computing (HPC) activities." https://coingeek.com/miners-enjoy-btc-gains-but-are-higher-energy-costs-coming
Well in theory like philipma1957 said, that Difficulty is needed . Proper in balance Difficulty is more important.
hodler2019Legendary
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#8Jun 2, 2019, 03:07 AM
some of that 11% was due to power shutdowns in Texas due to the extreme cold.
this next jump will bring +3 to +6
which in fact means we had back to back -2 and not
-11 +6
as the -11 would have been around -2 or -4
and this current jump would be a -2 or -4
the balance is happening.
the prior drops are more likely the mining adjustment. not the last one which was expanded by the cold weather in Texas . We will find out soon enough if that is correct.
as of now it looks like a high move up will occur.
we may get back all the lost hash in 1 jump which would mean miners are in the belief that BTC is going up soon.
Artificial intelligence equipment has become several times more expensive. According to my calculations, the payback is much worse than that of ASICs, and this equipment yields very little profit in mining. To recoup the investment, you need contracts for the next 3-4 years; otherwise, I don't see how this equipment will pay for itself.
hodler2019Legendary
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#10Jun 2, 2019, 10:52 AM
Well this jump is showing the huge drop was more because of cold weather than anything else
I did not expect to gain back all of the drop which means we go from 125t to 141t
but the charts show we may do that.
Still very very very early. We may see some game theory and hash falling back in days 10,11,12,13,14 of the jump
remember there is enough hash to be at a diff of 155t
quantumninjaFull Member
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#11Jun 2, 2019, 01:47 PM
The price has a negative impact on miners. If the bitcoin price is low (as it is now), then it's unprofitable for miners to mine bitcoin. Difficulty fades into the background if mining is financially feasible.
Difficulty and price won't have a significant impact on miners who are focused on the long term and use their bitcoin mining as an investment. For example, big players like Bhutan (although they recently sold their mined bitcoins) continue to mine bitcoin.
I'll probably let you in on a secret, but large mining companies buy equipment from manufacturers on installment plans, and they have electricity supply contracts. They can't stop mining, even if it's unprofitable, otherwise they'll face huge fines. I don't know the details of the contract or whether the low price of Bitcoin is a force majeure.
hodler2019Legendary
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#13Jun 2, 2019, 07:37 PM
Latest Block: 936610 (22 minutes ago)
Current Pace: 111.6054% (1187 / 1063.57 expected, 123.43 ahead)
Previous Difficulty: 141668107417558.2
Current Difficulty: 125864590119494.3
Next Difficulty: between 137915669479835 and 140656346024979
Next Difficulty Change: between +9.5746% and +11.7521%
Previous Retarget: February 7, 2026 at 8:42 AM (-11.1553%)
Next Retarget (earliest): Thursday at 9:46 PM (in 5d 3h 47m 57s)
Next Retarget (latest): Friday at 3:40 AM (in 5d 9h 42m 26s)
Projected Epoch Length: between 12d 13h 3m 38s and 12d 18h 58m 7s
this +11.6%
and last jump down by -11.15% simply mean the cold snap in Texas turned a lot of gear off and then on.
the older diff of 141.66t
may soon be about 140.65t
which means the slow diff drop since nov 2025 continues
The higher the price of Bitcoin, the higher the difficulty. Small miners can turn off their ASICs when it's unprofitable. Because Bitcoin's price range is $60,000-$70,000, some miners have a zero profit margin. Electricity is cheap in Texas, so by the time the summer heat hits, all the miners there will be back to normal.
ape_cipherFull Member
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#15Jun 3, 2019, 01:34 AM
Yeah surely small miners will stop when its no longer profitable however those larger mining farms with Cheap or free electricity and Powerful ASIC machines can still continue because they will still make profit.
Those who stay in places were electricity is very high in price will surely stop, those who enjoy free electricity really dont get affected that much and they usually continue mining.
I never knew electricity is cheap in Texas good for those miners over there.
And you are right the higher the price of bitcoin, the higher the difficulty, because it is the high price of bitcoin that motive miners to start mining, and difficulty changes only because the number and power of miners change.
The problem with large-scale miners is that they can't stop at any time. They have a contract for electricity consumption and favorable terms. It's more profitable for them to mine at a loss than to break the contract.
I don't believe large-scale miners have free electricity. Even if they have solar power, there's still a cost of production and a return on investment.
Miners will have to capitulate sooner, I am expecting huge changes once Bitcoin goes down to 40k range, I don't think that this is impossible, many will say it's impossible but to me it's not, from 69k top of the previous bull market all the way down to 15k, many thought that 30k would be the bottom lol, and now in the present cycle Bitcoin topped at 126k which makes people to believe again that 65k will be bottom, capitulation is important for another good leg up to unfold. I expect mining difficulty to go all the way down than what we are seeing presently.
Who do you think would sell Bitcoin for $30,000-$50,000? Miners won't sell at a loss, or only in very rare cases. 20 million Bitcoins have almost been mined. Miners certainly can't influence the coin's price.
ape_cipherFull Member
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#19Jun 6, 2019, 11:52 AM
Why are you saying its impossible, I remember telling you about the free electricity in my home town in Nigeria and how we have oil and gas, my town is not the only town that has this, google about the Niger delta region in Nigeria and they will tell you we are known for having a lot of oil and gas, Niger delta region has 9 states however not all town enjoy free electricity in Niger delta. now apart from the 24 hour free power supply will enjoy in my home town, there are Gas flaring from oil fields and Some large scale mining companies capture that gas and convert it to electricity and its free to do that, in my home town the oil company operating over there dont mind people using those gas flaring from oil fields and converting it to electricity so its totally free, were they spend money is on Equipment, Setup and Maintenance.
I believe you, but I don't understand why you haven't started mining yet?
You need to buy ASICs and watch a few videos on how to set them up.You have money lying around, and instead of trying to pick it up and put it in your pocket, you're telling others to do the same. I understand you lack experience and skills. But you can buy a used S19 ASIC for a couple hundred dollars and gain some experience and skills.
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