Wednesday, October 25, 2017

Bitcoin Miners Face Rising Difficulty



Bitcoin Miners face a huge challenge in making profits if more people get involved with mining. As difficulty increases, there is an increased likelihood for less revenue. As more mining hardware comes online, the mining difficulty will automatically adjust to ensure the time between blocks remains roughly 10 minutes apart.


See this chart here


The chart from Blockchain.info just how much difficulty has increased. Difficulty is up 4 times in one year from November 2016. When mining difficulty jumped sharply -- about 16% on Sept. 15, 2017, mining revenue declined. Mining revenue recently fell off 40% in this chart:



Bitcoin price, number of transactions also contribute to revenue to miners.

Disclosure: The author owns and mines Bitcoin.

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