{"id":9047,"date":"2025-01-22T11:02:31","date_gmt":"2025-01-22T11:02:31","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=9047"},"modified":"2025-01-22T11:02:31","modified_gmt":"2025-01-22T11:02:31","slug":"bitcoin-mining-difficulty-at-record-highs-but-miners-score-coins-at-a-300-discount","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=9047","title":{"rendered":"Bitcoin Mining Difficulty at Record Highs, but Miners Score Coins at a 300% Discount"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">Bitcoin <\/p>\n<style>\n    .cwp-coin-chart svg path {\n        stroke-width: 0.65 !important;\n    }<\/p>\n<\/style>\n<p>    <span class=\"cwp-coin-widget-container\" data-id=\"btc-bitcoin\" id=\"coin_widget_id_6790cd3073f21\"><\/p>\n<p>        <!-- name of the coin in the text --><br \/>\n        <span class=\"cwp-coin-widget-wrapper\" data-id=\"btc-bitcoin\"><br \/>\n            <span class=\"cwp-coin-widget-holder \" style=\"background:#e0e0e0;\"><br \/>\n                <span class=\"cwp-coin-name\" data-id=\"btc-bitcoin\"><br \/>\n                    <span class=\"cwp-coin-icon \"><\/span><br \/>\n                    <span class=\"cwp-coin-label \"><\/span><br \/>\n                    <span class=\"cwp-coin-symbol hidden\"><\/span><\/p>\n<p>                    <span class=\"cwp-coin-trend-holder\"><br \/>\n                        <span class=\"cwp-coin-price hidden\"><\/span><br \/>\n                    <\/span><br \/>\n                    <span class=\"cwp-coin-trend-holder\"><br \/>\n                        <span class=\"cwp-coin-trend \"><\/span><br \/>\n                    <\/span><\/p>\n<p>                <\/span><br \/>\n            <\/span><br \/>\n        <\/span><\/p>\n<p>        <!-- popup with basic info about the coin --><br \/>\n        <span class=\"cwp-coin-popup-wrapper \" data-id=\"btc-bitcoin\" style=\"\"><br \/>\n            <span class=\"cwp-coin-popup-holder\"><br \/>\n                <span class=\"cwp-coin-name\"><br \/>\n                    <span class=\"cwp-coin-icon\"><\/span><br \/>\n                    <span class=\"cwp-coin-popup-name\"><\/span><br \/>\n                    <span class=\"cwp-coin-popup-symbol\"><\/span><br \/>\n                <\/span><br \/>\n                <span class=\"cwp-coin-price\"><br \/>\n                    <span class=\"cwp-coin-price-title\">Price<\/span><br \/>\n                    <span class=\"cwp-coin-price-holder\"><br \/>\n                        <span class=\"cwp-coin-price-value\"><\/span><br \/>\n                        <span class=\"cwp-coin-trend-holder\"><br \/>\n                            <span class=\"cwp-coin-trend\"><\/span><br \/>\n                        <\/span><br \/>\n                    <\/span><br \/>\n                <\/span><br \/>\n                <span class=\"cwp-coin-volume\"><br \/>\n                    <span class=\"cwp-coin-price-holder\"><br \/>\n                        <span class=\"cwp-coin-volume-title\">Volume in 24h<\/span><\/p>\n<p>                    <\/span><br \/>\n                    <span class=\"cwp-coin-volume-value\"><\/span><br \/>\n                    <!-- <span class=\"cwp-coin-trend-holder\">\n                        <span class=\"cwp-coin-trend\">?<\/span> \n                    <\/span>                     --><br \/>\n                <\/span><br \/>\n                <span class=\"cwp-coin-chart\"><br \/>\n                    <span class=\"cwp-graph-title\">Price 7d<\/span><br \/>\n                    <span class=\"cwp-graph-container\"><\/span><br \/>\n                <\/span><\/p>\n<p>            <\/span>           <\/p>\n<p>        <\/span><br \/>\n    <\/span><\/p>\n<p> has been on an impressive upward trend, discounting minor fluctuations for the better part of the last two months. When Donald Trump won in August, prices broke above $70,000, surpassing the 2021 highs, and within days, the $100,000 milestone was within reach. It was a historic achievement.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As Bitcoin continues to hold above this psychological level, something else is unfolding\u2014something entirely expected. One analyst has observed a steady increase in Bitcoin mining difficulty since August last year.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Starting from August 2024, mining difficulty has been actively increasing, with quarterly difficulty changes rising from negative values to +24%.<\/p>\n<p>This indicates that miners are actively deploying new equipment, which boosts the overall network hash rate. Essentially, this\u2026 <a href=\"https:\/\/t.co\/uVfsMl9TLh\" target=\"_blank\" rel=\"nofollow\">pic.twitter.com\/uVfsMl9TLh<\/a><\/p>\n<p>\u2014 Axel <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f48e.png\" alt=\"\ud83d\udc8e\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/15.0.3\/72x72\/1f64c.png\" alt=\"\ud83d\ude4c\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> Adler Jr (@AxelAdlerJr) <a href=\"https:\/\/twitter.com\/AxelAdlerJr\/status\/1881645654436372804?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow\">January 21, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span data-preserver-spaces=\"true\">This means mining Bitcoin (BTC) has become harder for miners, and the quarterly difficulty adjustment has shifted from negative to approximately +24%.<\/span><span data-preserver-spaces=\"true\"> Many in the industry anticipated this rapid shift.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In early August, Bitcoin prices dipped, breaking below $50,000 and bottoming up at $49,000. Many thought the fairytale rally from 2021 had come to an end.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, momentum shifted rapidly from then onwards, allowing Bitcoin to reclaim and solidify its position above $55,000 and $60,000. This recovery coincided with an impressive expansion in mining difficulty.<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Bitcoin Mining Difficulty: A Mark of Bitcoin\u2019s Strength<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">Changes in Bitcoin mining difficulty often correlate closely with price movements. When prices rise, mining becomes more challenging as miners dedicate more resources to maintain a consistent flow of coins.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">This mechanism is exactly how Satoshi Nakamoto designed the network.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Mining difficulty prevents the network from dispensing 3.125 BTC every 10 minutes or so without adjustment. As of January 22, <\/span><span data-preserver-spaces=\"true\">mining difficulty<\/span><span data-preserver-spaces=\"true\"> reached a new all-time high of 110 trillion.<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-195507 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72.png\" alt=\"Bitcoin mining difficulty is at an all-time high but miners are mining 3X cheaper with prices trading above $105,000 \" width=\"1482\" height=\"706\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72.png 1482w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72-300x143.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72-1024x488.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72-768x366.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72-130x63.png 130w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72-104x50.png 104w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72-83x40.png 83w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-72-50x24.png 50w\" sizes=\"(max-width: 1482px) 100vw, 1482px\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/www.coinwarz.com\/mining\/bitcoin\/difficulty-chart\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">Whenever mining difficulty increases, farms require more computational resources and energy, leading to higher operational costs. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The silver lining for ordinary users is that, as long as miners remain active, regardless of spot prices or difficulty, the Bitcoin network remains stable and secure, ensuring seamless value transfers at any time.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">And for this, the mainnet rewards them for their efforts via block rewards and block fees.<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Difficulty, Hash Rate, and Profitability<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">From how Bitcoin is designed, adjusting in response to price changes is difficult. A price spike often signals higher network demand, which drives up difficulty.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Since the network recently halved mining rewards, mining farms are now allocating more resources and streamlining operations to maintain profitability. More of their revenue will come from transaction fees rather than block rewards in the coming years.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Despite the record mining difficulty and reduced block rewards compared to last year, miners are currently highly profitable<span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">, perhaps because only a few major mining pools and\u00a0<a href=\"https:\/\/99bitcoins.com\/news\/marathon-digital-and-riot-platforms-hit-highest-bitcoin-production-post-halving\/\" target=\"_blank\" rel=\"noopener\">farms<\/a> operate now<\/span>. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Mining is currently dominated by a <a class=\"general-link\" href=\"https:\/\/mempool.space\/mining\" target=\"_blank\" rel=\"noopener nofollow\">handful of mining pools<\/a>, with Foundry USA and Antpool leading the pack and collectively contributing over 50% of the total hash rate.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-195509 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74.png\" alt=\"Bitcoin mining difficulty is at an all-time high but miners are mining 3X cheaper with prices trading above $105,000 \" width=\"1135\" height=\"547\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74.png 1135w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74-300x145.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74-1024x494.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74-768x370.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74-130x63.png 130w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74-104x50.png 104w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74-83x40.png 83w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-74-50x24.png 50w\" sizes=\"auto, (max-width: 1135px) 100vw, 1135px\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/mempool.space\/mining\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">According to <\/span><span data-preserver-spaces=\"true\">Glassnode data<\/span><span data-preserver-spaces=\"true\">, the average cost of mining a single Bitcoin is less than $35,000, compared to the $105,000 spot price on exchanges like Binance.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-195508 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73.png\" alt=\"Bitcoin mining difficulty is at an all-time high but miners are mining 3X cheaper with prices trading above $105,000 \" width=\"1578\" height=\"760\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73.png 1578w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73-300x144.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73-1024x493.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73-768x370.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73-130x63.png 130w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73-104x50.png 104w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73-83x40.png 83w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73-1536x740.png 1536w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-73-50x24.png 50w\" sizes=\"auto, (max-width: 1578px) 100vw, 1578px\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/studio.glassnode.com\/charts\/c27227f4-506f-4bde-49b4-1e0d80150dd1?s=1705997936&amp;u=1737533936&amp;zoom=365\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">Every halving cycle flushes out weaker miners. Although this may temporarily reduce the hash rate\u2014as seen in April 2024\u2014it typically recovers steadily over time.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-195506 size-full\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-71.png\" alt=\"Bitcoin mining difficulty is at an all-time high but miners are mining 3X cheaper with prices trading above $105,000 \" width=\"1387\" height=\"709\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-71.png 1387w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-71-300x153.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-71-1024x523.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-71-768x393.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/01\/Screenshot-71-50x26.png 50w\" sizes=\"auto, (max-width: 1387px) 100vw, 1387px\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/www.blockchain.com\/explorer\/charts\/hash-rate\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">Currently, the hash rate <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.blockchain.com\/explorer\/charts\/hash-rate\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">mirrors<\/span><\/a><span data-preserver-spaces=\"true\"> the rising difficulty, standing at 786 EH\/s, slightly below the all-time high of 817 EH\/s.<\/span><\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/pr-news\/sol-price-smacks-new-weekly-high-as-new-solana-layer-2-cracks-11m-funding\/\" target=\"_blank\" rel=\"noopener\">SOL Price Smacks New Weekly High As New Solana Layer 2 Cracks $11M Funding<\/a><\/strong><\/p>\n<p><a class=\"general-link\" href=\"https:\/\/discord.gg\/pryA3Vyd\" target=\"_blank\" rel=\"nofollow noopener nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow\"><b>Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/b><\/a><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/bitcoin-mining-difficulty-at-record-highs-but-miners-score-coins-at-a-300-discount\/\">Bitcoin Mining Difficulty at Record Highs, but Miners Score Coins at a 300% Discount<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin Price Volume in 24h Price 7d has been on an impressive upward trend, discounting minor fluctuations for the better part of the last two months. When Donald Trump won in August, prices broke above $70,000, surpassing the 2021 highs, and within days, the $100,000 milestone was within reach. It was a historic achievement. As [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-9047","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9047"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9047\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}