The withdrawal of minors benefits those who remain active | CryptoNews

A large number of mining machines have been shut down due to the lower price of bitcoin. When the price of cryptocurrency goes down, mining becomes less profitable compared to the reward obtained and the cost of electricity consumed by the equipment. This is added to the expenses of other services such as the Internet and the maintenance of equipment and mining facilities.

Thanks to the difficulty of setting the extraction in the Bitcoin network, miners who run their machines will get bigger rewards in BTC. While, in the future, could also realize higher profits, compared to a possible increase in the price of bitcoin. However, each minor must calculate whether it is worthwhile to continue working at full capacity or whether it is more practical to reduce production.

Yesterday, a mining pool reported that between 600,000 and 800,000 Bitcoin miners had been extinguished since mid-November. According to the publication, the main reason is the lowering of the price of cryptocurrency, which results in a decrease in processing power or hashrate network.

According to Blockchain Block Explorer data, the hashrate Bitcoin it fell from 54 EH / s in early November to 41 EH / s at the time of writing.

The adjustment of the difficulty undermined

Variations such as the one just mentioned in hashrate they cause other changes on the network, due to a key feature of the Bitcoin protocol: the difficulty setting. All blocks of 2016, the difficulty of operating Bitcoin is adjusted according to the increase or decrease of the processing power, so that the operation of the network is not affected.

When there are fewer minors working, the hashrate and at the same time, block production and the issuance of bitcoins are decreasing. Similarly, on the contrary, the greater the number of minors, the greater the hashrate and the work in the network is accelerated.

The difficulty setting is responsible for stabilize or balance the available mining power and the difficulty of mining, so that the average resolution time of blocks is kept in the standard of one block every 10 minutes, as indicated in the Bitcoin white paper.

These changes in difficulty directly affect the reward each miner gets for his work. When the difficulty increases, the performance of an extraction device decreases. while, if the difficulty is the one that decreases, the team's performance increases. The second scenario described results in a greater reward for miners, as they will take less time to undermine blocks and the receipt of rewards will become more frequent.

In this regard, it should be noted that Bitcoin miners are not the only ones facing this scenario. Before the widespread fall of the entire market, miners of all crypto-currencies using the work test (PoW) are in the same position as those dedicated to the cryptocurrency of origin. Ether (ETH), Zcash (ZEC), Monero (XMR), Siacoin (SC), Decred (DCR) and Ethereum Classic (ETC). these are some of the cryptographic currencies whose market value has also declined; therefore, those who undermine them are now forced to re-evaluate their profits with current prices.

Miners less affected by the fall of the cryptoactivity market are those who do this activity in places where electricity is very profitable, or who benefit from subsidies, which allows them to continue without too much concern while trying to draw profit from the decline. in the difficulty of mining.

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