Bitcoin mining is now easier and more profitable as algorithm adjusts after China crackdown
Summary
On Saturday, the bitcoin code automatically made it about 28% less difficult to mine – a historically unprecedented drop for the network – thereby restoring block times back to the optimal 10-minute window. The bitcoin algorithm is programmed to handle an increase or decrease in mining machines, according to Mike Colyer, CEO of digital currency company Foundry. Fewer competitors and less difficulty means that any miner with a machine plugged in is going to see a significant increase in profitability and more predictable revenue. Part of the problem, according to Feinstein, is that even before China cut off mining, there was already a lack of infrastructure to house the new-generation miners being deployed monthly by Beijing-based manufacturer Bitmain. U.S. bitcoin mining is booming, and has venture capital flowing to it, so they are poised to take advantage of the miner migration, Arvanaghi told CNBC.
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