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Home » Bitcoin (BTC) Mining Difficulty Drops for the Third Time in 2022

Bitcoin (BTC) Mining Difficulty Drops for the Third Time in 2022

Bitcoin Mining

Since June 9, the difficulty of mining bitcoin has dropped by 70 EH/s, a drop of 50% since June 18. The two top Chinese mining hubs, Xinjiang and Sichuan, were among the hardest to mine globally. As a result, those bitcoin miners who did not suffer the decrease will see a higher share of the rewards when the next adjustment is made. In bitcoin code, you may learn more about selling and buying bitcoin.

Bitcoin’s hash rate has decreased by nearly 30% since the February 15 ATH. It dropped from 249 exahashes per second to 169. As a result, the difficulty of mining BTC is expected to increase, possibly by as much as 4.78%. To maintain profitability, miners must improve their hash rate. Fortunately, the bitcoin network bounced back. According to Glassnode, hashrates hovered around 189 exahashes per second on January 1.

Bitcoin Mining

Until July 2021, China was the largest bitcoin mining country, and its ban impacted the crypto world. China’s internet shutdown severely affected the fast-growing crypto industry there. Despite the disruptions, hashrate recovered, and by December, it reached a new high of 182 EH/s. The reason for the recovery is that mining operations have moved to North America and Kazakhstan. And unless the price of bitcoin falls again, hashrate will continue to increase.

Energy consumption

As a form of monetary battery, Bitcoin requires massive amounts of electricity. Bitcoin miners are encouraged to seek out locations where electricity is cheap to reduce energy consumption. For example, many miners have opted to shop in rural areas with surplus renewable energy and low demand. However, such places are often difficult to transport and store. Besides, the amount of electricity needed for Bitcoin mining is equivalent to the production of gold.

The study estimates the energy consumption of Bitcoin mining as roughly the same as those of Chile, Venezuela, and Colombia. These are extremely small compared to the largest electricity consumers globally, including the USA and China. However, the error margins are high. The study also includes the carbon footprint of the energy used by Bitcoin miners. Thus, there is an inevitable question – will Bitcoin mining destroy the climate by 2033?


As Bitcoin prices rise, mining becomes more expensive, both for the equipment and the electricity needed to run the machines. The mining process involves billions of calculations per second. As more transactions are processed, the amount of available bitcoins decreases. To remain profitable, the total costs of Bitcoin mining must be less than the amount of output. Increasing bitcoin prices and high demand for GPUs are the only ways to keep the process profitable.

According to one estimate, the mining process uses around 45MW of electricity each year. That’s enough electricity to power a million transatlantic flights. The energy costs are further compounded by the fact that the electricity used to mine Bitcoin is roughly equivalent to Ireland’s entire annual energy consumption. 

It makes the mining process particularly destructive to the environment. Despite the high costs, other factors contribute to its economic stability. For example, Northern Bitcoin has turned on its mining pool and recruited miners to join it. Soon, it will be open to others. This mining pool will take a 2% cut of the profits generated by users.

Hash rate

While the hash rate of Bitcoin mining is currently around 181 EH/S, many experts predict that the hashrate will double by 2022. The internet blackout likely prevented miners from accessing the bitcoin network. The initial perception of bitcoin mining as an isolated hobby is now changing, and multiple mining companies are now publicly traded with the support of investors. The bitcoin network is in an excellent position for the future, but it is still prone to disruptions.

Final Words 

In addition, the rapid growth of cryptocurrency mining in China has created discord in the global markets. The price of graphics cards has skyrocketed by 25%, upsetting the AI and gaming industries worldwide. Recently, Iran banned crypto mining. A power station flooded in Xinjiang, leading to a massive drop in global hashrate and a 15% decline in bitcoin’s value.