With the frightening drop in the price of Bitcoin, many have decided to put their miners off. This has created an opportunity in the sense that the Bitcoin mining difficulty has also dropped. It means that it is easier to mine Bitcoin now. We take a look at why you should be mining Bitcoin now.
How the price of Bitcoin affects mining
Two or three weeks ago, the price of Bitcoin took a dive from $6 500 to $4 000 and today Bitcoin is trading at $3 376.52 according to Coinmarketcap. In the last month, the price of Bitcoin has dropped with almost 50%. As the price of bitcoin goes down, so does the hash rate of the Bitcoin network. This means that it becomes easier to mine Bitcoin. As a matter of fact, the Bitcoin mining difficulty has dropped with more than 15%. This is the second-highest drop in the history of Bitcoin mining difficulty. The highest (an 18% fall) was recorded in November 2011.
Keeping with the times
A lot of miners have been shut down following the drop in the price of Bitcoin. For the simple reason that it is not profitable for some to mine Bitcoin when taking into consideration the cost of electricity. It makes sense that if more people are mining Bitcoin, its hashing difficulty will be higher than when fewer people are mining it.
As miners are being shut down and go offline, there is a lack of sufficient hash power to solve the mining algorithm. By solving this algorithm, new transaction blocks are discovered. In actual fact, Bitcoin’s hashing difficulty algorithm is adjusted to maintain its 10-minute block time.
Mao Shixing from F2pool recently said more than 800 000 miners have been shut down since Bitcoin’s price started plummeting. F2pool is the fourth largest BTC mining pool in the world.
It is also being said that Bitmain is at its most vulnerable since Bitcoin Cash is at a historic low.
Start mining Bitcoin
Did you know that as of now it is more profitable to mine Bitcoin than Bitcoin Cash SV and Bitcoin Cash? With the mining difficulty being down, it is easy for new miners to mine Bitcoin and be rewarded. The key is to mine Bitcoin now and keep it for the next bull run.
Bitmart offers the best Bitcoin miners for those who are looking at mining Bitcoin. Here is a number of outstanding Bitcoin miners at knock-down prices:
Antminer S9 for R4,999.00
Avalon 821 for R3,999.00
Antminer S15 for R41,099.00. This is the latest Bitcoin miner on the market!
Visit the Bitmart website for these and many other miners currently on sale. Click here.
When will the price of Bitcoin go up again?
Excellent question. Even though no one can say for sure when the price of Bitcoin will go to the moon again, there are certain events which may affect the price of Bitcoin.
First is the Bakkt ETF that is scheduled for 24 January 2019. For more details about the Bakkt ETF, click here. Then there is the SEC’s decision to approve a Bitcoin ETF or not. News broke this morning that the deadline has yet again been extended to 27 February 2019. The SEC said the reason for the postponement is to allow for sufficient time to review the rule change proposals to list VanEck’s Bitcoin ETF. Even though this is not such great news for the crypto community (another postponement), it is safe to say that the SEC cannot delay the process anymore. Literally! Under the SEC Act, they must approve or disapprove the proposed rule change no later than 180 days after the date of publication of the notice. This falls exactly on 27 February.
In conclusion, Bitmart CEO Jacques Serfontein urges the crypto community to hodl in this difficult time and not lose hope.