BTC Mining Competition Surges Despite Drop In On-Chain Activity

BTC mining competition surges despite the recent drop in on-chain activity and the transaction count and fees are both down so let’s read more in today’s latest Bitcoin news.

Bitcoin’s rising hash power flies in the face of the bear market according to the data from Glassnode. In the company’s weekly on-chain update, it analyzed investor behavior amid the BTC’s latest price slump and the crypto broke above its $45,000 resistnace last month but since dropped into its consolidation range of $40,000. according to Glassdoor research, the on-chain spending behavior shows that some investors seemed to be profit-taking in the recent rally.

Bitcoin’s user base also lacks evidence of a strogn growth and recovery with the daily active users will in the upper band of the six-year bear market channel. The transaction count is also low and near 225,000 per day, while the higher levels in July are still a far cry from the common bull market momentum, and as such, the transaction fees were nearing an all-time low since Last May reflecting a competition of blocks space among the BTC traders.

This can push down the incentive for mining BTC as the miners earn fewer profits per block. However, the BTC mining competition in the industry seems to be rising in spite of this with the mining difficulty reaching an ATH. Each BTC block requires about 122.78 Zetahashs to solve so in other words, according to Glassnode:

 “This would be equivalent to all 7.938 Billion people on Earth each guessing a SHA256 hash 15.5 trillion times, every 10 mins to solve each Bitcoin block.”

BTC miners use computing power to race and solve the next block and they profit by earning newly minted BTC from the associated transaction fees. The block reards now compose the vast majority of the miners’ rewards which explains the lackluster on-chain activity which still hasn’t dampened the mining.
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As recently reported, Kevin O’Leary spoke at the Bitcoin 2022 Conference and voiced support for BTC as well as renewable proof of work mining and believed that regulations introduced by lawmakers can remove the uncertainty investors felt towards the sector. The investor and media personality nicknamed “Mr. Wonderful” touted his support for the renewable mining sector as well as proactive regulatory efforts which are introduced by the US government in the near future.