The crypto mining industry is reeling under a lot of pressure. This is because the cryptocurrencies have fallen so much that crypto mining is no longer profitable. This is a problem which is being faced by the Bitcoin mining community as well. Up until now, many of the mining operations were continuing at a loss. However, the same cannot be said after the changes in the Bitcoin mining difficulty in the past 24 hours. This might however be positive news for the Bitcoin mining community rather than a negative one.
How has cryptocurrency downturn impacted Bitcoin mining difficulty?
What this means for the normal cryptocurrency miners is that it is now comparatively easier to mine Bitcoin as the competition is on the lesser side. As a result, their earnings are slated to go up the by a tiny fractional amount. It remains to be seen whether the recovery in Bitcoin (BTC) again increases the difficulty level or not. If the difficulty level increases once again, the increased profits will be drained out. The problem is that even at the price of $ 4000, Bitcoin mining is not profitable.
The main problem is that if the cryptocurrencies do not recover anytime soon, more and more miners will move away from mining cryptocurrency. In such a case, the blockchain as well as the speed of transaction execution will be impacted as well. In such a case, the mainstream adoption of cryptocurrencies can be impacted. Thus, it remains to be seen how soon the profit margins for the cryptocurrency miners increase. Up until now, they have been pretty lacklustre. Many of the mining operations are not even profitable. If things remain so, irrespective of the lower difficulty levels of Bitcoin mining, the mining operations might not become profitable in the longer run.