On April 1, 2022, 19 million Bitcoins were mined, which was a significant milestone for the network. However, this also puts the miners in a tougher spot as they are all now competing for the remaining 2 million coins. So, with this increased hash rate and lower supply, Bitcoin mining difficulty reaches a new all-time high (ATH). With time, it is going to become very difficult for small miners using less powerful machines to make profits in the industry.
Bitcoin mining difficulty reaches new ATH
The new mining difficulty of Bitcoin is now 28.587 trillion. The higher the number, the more difficult it gets to find the new block. Bitcoin’s mining difficulty is also directly proportional to the hash rate. When the hash rate increases, there is more competition, and hence the difficulty increases. And when the hash rate decreases, it’s the opposite. Right now, data suggests that the mining hash rate is 196.91 exahash per second (EH/s). There has recently been a decline in the overall hash rate from an all-time high of nearly 250 EH/s.
A higher hash rate secures the network better, so the increasing difficulty is good for Bitcoin as well. It is seen to work better against double-spending attacks, which allow users to spend the same Bitcoin twice. Even though it’s very difficult, the perpetrator here requires the BTC after the first transaction to use it again.
Should you start BTC mining?
Depending on where you are, Bitcoin mining can be a great or a really bad idea. In the US, it won’t be a bad idea to start a mining business if you have the funds to make a decent setup. However, in India, it is not possible to mine cryptocurrencies profitably anymore. Or you can say that the profits will be meager. This is because, under the new taxation laws, you won’t be able to set off the equipment and electricity cost with the BTC you mine. Hence, the 30% tax will apply to the entire revenue and not profits. This indirectly kills the entire mining industry in India.
What are your thoughts as Bitcoin mining difficulty reaches new ATH with 19 million Bitcoins being mined? And do you think that India will reconsider the way it’s taxing crypto? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Defiance ETFs CEO says it’s a “good time” to invest in Bitcoin