What is the current difficulty of mining machine (What’s wrong with the mining machine)?

08/19/2023 04:54 • Blockchain Briefs • 54 views

What is the current difficulty of mining machine? After the halving of Bitcoin, with the rise of mining difficulty, the computing power of the Bitcoin network has been continuously improving. The increase in the total network computing power has reached a new milestone for some mainstream cryptocurrencies. But for ordinary investors, what exactly is the “current difficulty of the mining machine” (DAA)? We can refer to the following picture:

The picture shows the average hash rate (unit: TH/s) of Bitcoin mining equipment.

The overall decline in profitability of the entire mining industry is due to the rise in the price of Bitcoin. On the other hand, the price of Ethereum has also started to decline, with an increase of more than 50% from the beginning of the year to the present low point. Therefore, the awareness and investment interest in mining machines have declined.

According to estimates from the Cambridge Alternative Finance Center, the profit margin of the global Bitcoin mining industry in 2019 was $3 per T in cost. This means that when you buy a Bitcoin mining machine, your electricity bill will be significantly reduced because electricity is no longer as important at this time, which will affect the use of the machine. Therefore, if it is converted into other currencies or used by computer users, it may take several years to understand the size of these digital assets. (Image from Coinmarketcap.com)

In addition, miners can adjust their own operation and maintenance strategies through various means, such as optimizing software performance and reducing operating costs, to control their hardware configurations. For example, Bitmain’s Antminer S19 Pro uses this method to adjust the total power consumption of ASIC mining machines.

What’s wrong with the mining machine

A mining machine is a machine used to mine Bitcoin, and ordinary people do not buy it. Because when conducting transactions on the network, the hash rate of the device needs to be input, so when you use a computer to mine Bitcoin, you don’t need to buy graphics cards or other hardware resources.

In fact, the essence of a mining machine is a computational power server. Its operation mainly has two aspects:

1. Proof of work mechanism: If a person can obtain a specific digital currency through calculation and send it to an address on the blockchain, then his task will be referred to as “verification” and “confirmation”.

2. Random algorithm: “Random number generator”, it includes each block in a rule based on the order of time, so as to determine whether this process is completed smoothly. This also means that as long as someone wants to create a new block, they can use this parameter to execute anything. These operations are to ensure its effectiveness and security, and only if a certain amount of data is obtained, it can work. But because the data is not recorded, the entire system cannot function properly, so miners only want to take their encrypted assets out of their computers and then receive the coins they mined as rewards.

Currently, there have been some ASIC chips on the market, such as the Antminer S9 Pro, which can customize corresponding products according to their own needs. But these chips also have disadvantages – they are prone to overheating, and there are many problems that cannot be solved in a timely manner.

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What is the current difficulty of mining machine (What’s wrong with the mining machine)?

What’s wrong with the mining machine

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