The complexity of bitcoin mining has recently grown to 7%, up to 15.56 trillion hashes. The level has been gradually improving since July. When it fell to 13.67 t. In May, the complexity of mining dropped significantly. And it began to improve only on July 31. It has grown by 6% since July.
The revival of the industry due to the complexity of bitcoin mining
The industry will improve after a complete lock on the mining of cryptocurrencies in China. This will happen due to the increasing complexity of bitcoin mining. The main reason for the increase in the complexity of mining is the forced relocation of the Chinese. And industry figures from other countries who began to take advantage of the situation and increase their incomes.
It would not have been possible to transport all mining production in such a short time. Only larger entrepreneurs could do this. And not the big ones just stopped working. Chinese companies needed time to move production. As well as configure all the equipment. It can’t be done too quickly.
According to this, the recovery of bitcoin is likely to be before the end of the year. At least, these are the forecasts of many experts. In October or November, it will reach the mark it was at before the situation with China.
Direct connection to the cryptocurrency market
The price of the cryptocurrency has dropped significantly to $28.8 thousand. The main reason was the increase in the complexity of bitcoin mining. Since in June, bitcoin grew by 14% in just one week. There is no stability yet. Moreover, in recent weeks, miners collected and stored the generated bitcoins. It would be wiser to spend them. The complete introduction of a mining ban in China has led to great consequences. Chinese miners are gradually leaving China and starting their work again. The ban also had an impact on the bitcoin exchange rate. However, the main reason for the growth of bitcoin is still undoubtedly constant investment and interest in cryptocurrencies. Initially from solvent players and advanced miners.
Today, the cost of bitcoin almost does not depend on the number of tokens mined — market mechanisms are already working. The only open question is whether the purchase and operation of mining equipment will still be justified if bitcoin continues to decline.
In part, the decline in the price of Bitcoin is due to the increase in the value of the American currency. The US dollar currency index has reached its highest level since 2002, and this causes a decline in the value of other assets.