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What is the situation when mining power growth is slow (mining power fluctuates)?

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The slow growth of mining power refers to the situation when the mining power in

What is the situation when mining power growth is slow (mining power fluctuates)?

The slow growth of mining power refers to the situation when the mining power increases slowly. It is mainly manifested in the following aspects: the average block time of Bitcoin is much longer than any other asset. Generally speaking, miners need to wait a long time to confirm whether the next block has successfully packaged the transactions. When the difficulty increases, the overall network difficulty decreases due to the rise in difficulty, which leads to network congestion and ultimately increases the mining difficulty. This situation occurs when there is no significant drop in the coin price or the appearance of new ASIC miners, resulting in a decrease in the amount of mined bitcoins (the current price is close to $3000).

Mining power fluctuates

According to Bitcoin China data, the mining power and price of Bitcoin mining industry have shown a polarized trend this year. On the one hand, it is affected by the rising mining difficulty, increasing electricity prices, and changes in the market environment; on the other hand, it is also because the cryptocurrency market is highly volatile, causing some people to believe that mining returns will not be so stable. From the chart, in the early stages of Bitcoin network operation, mining machine manufacturers often choose mining pools or hosting service providers for mining, which is very different from the time interval for miners to invest in electricity resources. Under this model, due to uncertain cost factors, when the overall network computing power reaches its peak, mining power will also decrease.

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