Bitcoin ( $60,115.00 ) mining operations are on the path to full recovery following the most dramatic short-term disruption in network history earlier this year, and miners are reaping the rewards in revenues.
In its Oct. 4 Week on Chain report, on-chain analytics provider Glassnode reports that Bitcoin ( $60,115.00 ) hashrate has largely recovered despite 50% of the network’s hashing power going offline in May following China’s crackdown on the sector. Hash rate measures the total computational resources of a Proof-of-Work network.
Glassnode asserts that both hash rate and mining difficulty — which measures competition among miners seeking to solve the network’s next block — are both on a “consistent path to recovery.” Cointelegraph reported that difficulty slumped by 28% in early July.
Having increased 39% since late July, mining difficulty has nearly returned to its pre-China exodus levels, with an additional upward adjustment expected to take place this week. Glassnode also reported that the difficulty ribbon has posted its strongest reversal since December 2018.
Bitcoin ( $60,115.00 ) mining difficulty: Glassnode
As observed by Chinese media outlet Wu Blockchain, Bitcoin ( $60,115.00 ) ’s difficulty increased by 4.71% at block height 703,584 on Oct. 5. It is the sixth consecutive increase since July 31.
Related: Bitcoin ( $60,115.00 ) mining difficulty surges 31% since July
Despite block rewards having been slashed by 50% from 12.5 BTC to 6.25 BTC in May 2020 halving event, mining profitability has increased significantly since.
Glassnode noted that the current mining profitability of $40 million daiy is up 275% since before Bitcoin ( $60,115.00 ) ’s May 2020 halving, and has increased by roughly 630% compared to June 2020’s lows of roughly between $6 million and $8 million.
“Despite dramatic shifts in the mining market, multiple deep price corrections, and a halving event in May 2020, the Bitcoin ( $60,115.00 ) block reward value continues to rise, creating incentives for the market to adapt, innovate and recover,” the report added.
Bitcoin ( $60,115.00 ) mining revenue: Glassnode