Sunday, November 29, 2020
coincasso bitcoin exchange banner
Home Bitcoin Block Generation Speed Falls

Bitcoin Block Generation Speed Falls

After halving, as Bitcoin mining became more and more expensive, many miners decided to leave the business. Some mining machines started to be unprofitable and the purchase of new ones and the vision of higher electricity charges meant that fewer and fewer Bitcoins were being mined. 

The speed of BTC generation has dropped to that of 2017

By decreasing the number of miners, the number of blocks generated in Bitcoin’s blockchain has significantly dropped. On 18 May only 95 blocks were mined. This means prizes of just over 600 BTC. Before halving every day the prizes were about 1 800 Bitcoins. The expected number of BTCs mined after halving was 900 a day. What happened?

Bitcoin hash rate drops

In the last few years, there have only been 8 days in which less than 100 blocks were mined. Most of them took place in 2017. Currently, many miners are unable to mine further, as the price of Bitcoin has remained the same and the amount of Bitcoins mined has been halved. After halving, the daily output of Bitcoin was at 100-120 blocks, but on 18 May it fell to 95.

btc hash rate

Source: Glassnode

Mining costs increase

The biggest cost for miners is electricity. Depending on the region, the costs of digging may vary. Miners with poorer equipment or higher electricity costs have to wait until BTC prices compensate for the digging costs. However, many of them will decide to leave the business. Only very experienced and efficient miners will then remain in the market, who will accumulate a much higher amount of BTCs, by reducing the number of competitors. For older generation generators, which now account for about 30% of the market, electricity prices would again have to fall significantly. In view of the economic crisis, such an option seems possible, but it is not clear how a reduction in electricity prices would affect the number of active power generators. The second possible solution, in this case, is a significant increase in BTC. Will the price of Bitcoin increase as after previous halvings?  

Will the Bitcoin price compensate mining?

There is a 9% chance that by the end of 2020 BTC will cost $20,000. Based on the Bitcoin price charts from the previous halvings, it can be assumed that after 6 to 8 months, prices will start to rise strongly. However, BTC prices are currently subject to quite large fluctuations and it is almost impossible to predict them in the long-term. During the COVID-19 pandemic the upcoming months’ Bitcoin values are highly uncertain, so investors are very cautious in long-term predictions. BTC prices will determine whether there will be a much smaller number of miners left in the future, but they will hold more power in their hands, or whether smaller players will return to the game.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Sidebar Widget
USD
EUR
PLN
RUB
bitcoinBitcoin (BTC)
$ 18,095.08
ethereumEthereum (ETH)
$ 554.21
tetherTether (USDT)
$ 1.00
rippleXRP (XRP)
$ 0.617517
bitcoin-cashBitcoin Cash (BCH)
$ 280.78
litecoinLitecoin (LTC)
$ 75.48
tronTRON (TRX)
$ 0.030621
moneroMonero (XMR)
$ 121.99
dashDash (DASH)
$ 107.99
eosEOS (EOS)
$ 2.99
dogecoinDogecoin (DOGE)
$ 0.003426
bitcoinBitcoin (BTC)
15.131,74
ethereumEthereum (ETH)
463,45
tetherTether (USDT)
0,836235
rippleXRP (XRP)
0,516389
bitcoin-cashBitcoin Cash (BCH)
234,80
litecoinLitecoin (LTC)
63,12
tronTRON (TRX)
0,025606
moneroMonero (XMR)
102,01
dashDash (DASH)
90,31
eosEOS (EOS)
2,50
dogecoinDogecoin (DOGE)
0,002865
bitcoinBitcoin (BTC)
67,875.55
ethereumEthereum (ETH)
2,078.87
tetherTether (USDT)
3.75
rippleXRP (XRP)
2.32
bitcoin-cashBitcoin Cash (BCH)
1,053.22
litecoinLitecoin (LTC)
283.13
tronTRON (TRX)
0.114861
moneroMonero (XMR)
457.59
dashDash (DASH)
405.08
eosEOS (EOS)
11.22
dogecoinDogecoin (DOGE)
0.012851
bitcoinBitcoin (BTC)
1,375,171.96
ethereumEthereum (ETH)
42,118.30
tetherTether (USDT)
76.00
rippleXRP (XRP)
46.93
bitcoin-cashBitcoin Cash (BCH)
21,338.44
litecoinLitecoin (LTC)
5,736.25
tronTRON (TRX)
2.33
moneroMonero (XMR)
9,270.88
dashDash (DASH)
8,206.92
eosEOS (EOS)
227.23
dogecoinDogecoin (DOGE)
0.260366
Sidebar Post
coincasso bitcoin exchange banner

Latest News

CBDC becoming more and more popular

More and more countries are planning and developing the emission of their own crypto. Lithuania announces the launch of its CBDC in July, while...

Bitcoin versus gold, what is a better investment?

Since the global COVID-19 pandemic, people have been looking for an alternative to keeping their savings in their domestic currencies. Some of them choose...

The Medical University of California forced to pay the ransom

Hackers hacked into Medical University computers and demanded a ransom for unlocking the data. After not very fruitful negotiations, the hackers received 116.4 BTC. A...

Blockchain e-voting system was attacked

Bitfury working for the Russian government was attacked at the weekend. Are innovative solutions safe? Problems in the Russian voting system  The Russian system of voting...

Crypto-powered online game tournaments are the future of this market

The Counter-Strike stars will soon be taking part in a cryptographic tournament, while fans will be able to bet on the score with VRA...