Bitcoin mining has suddenly become far more lucrative - but maybe not for long

Bitcoin
(Image credit: Shutterstock / REDPIXEL.PL)

Since the introduction of ASIC devices back in 2012, mining bitcoin has become increasingly challenging but the cryptocurrency has now experienced its biggest mining difficulty decrease since June.

As reported by Coindesk, Bitcoin's mining difficultly dropped by 16 percent to 16.787tn this week marking the second-largest percentage decrease of all time. 

Mining difficulty is determined by the amount of resources required to mine a fresh block of Bitcoin. This relative measure is adjusted approximately every two weeks and when blocks are mined too quickly or too slowly, the difficulty adjusts to bring the speed back in check.

Changing seasons

The recent adjustment to bitcoin's mining difficulty is a direct result of mining companies in China's Sichuan province taking machines offline and moving them to areas with cheaper electricity.

Director of research at HASHR8, John Lee Quigley explained why these companies are moving their mining rigs out of Sichuan province in a recent article, saying:

“Sichuan has vast hydropower infrastructure. During the rainy season – which spans from roughly April to October –  Bitcoin miners secure low electricity rates in the region due to the surplus of hydropower energy generated. However, when the rainy season finishes, rates significantly increase and Bitcoin miners transition their rigs to regions like Xinjiang and Inner Mongolia where competitive electricity rates can be secured.”

This means that mining bitcoin will be significantly more profitable for miners over the next two weeks until the difficult rate is adjusted once again. So if you currently have a mining rig that's not being put to use, now would be an excellent time to turn it back on and start mining.

Via Coindesk

Anthony Spadafora

After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home. 

Latest in Software & Services
woman listening to computer
AWS vs Azure: choosing the right platform to maximize your company's investment
Group of people meeting
Zoom vs Google Meet: which is the best video conferencing tool for your business?
Person at laptop
Windows 11 vs Windows 365: which is the best choice for businesses?
A man sitting at his desk in the evening and using a desktop computer
Office 2021 vs Office 2024: is it time to upgrade?
Microsoft 365 Business app logos
Office 2024 LTSC vs Microsoft 365 Business: what are the differences?
Windows 11 Start menu layout choices: Grid view
Windows 11 vs Linux for business: which operating system should you embrace?
Latest in News
Brad Pitt looks over his right shoulder with 'F1' written behind him
Apple Original Films will take you behind-the-scenes of a racing cockpit in this new thrilling F1 movie trailer
AI writer
Coding AI tells developer to write it himself
Reacher looking down at another character from the Prime Video TV series Reacher
Reacher season 3 becomes Prime Video’s biggest returning show thanks to Hollywood’s biggest heavyweight
Image showing detail of the Leica D-Lux 8
Still can't get a Fujifilm X100VI? This premium Leica compact costs less, and it's in stock
Man using iMessage on an iPhone
Apple will finally enable encrypted RCS messages between iOS and Android, and it's about time
Google Messages update
Google Messages could soon follow WhatsApp with an upgrade that makes it much easier to join group chats