Before the crackdown on Bitcoin mining by China, the mining difficulty of BTC was quite high, but as the Asian country has renewed its hostilities against the crypto asset, many of the miners in the country have been forced to go offline thereby reducing the erstwhile high difficulty level.
Available data from the past week have shown that miners that have remained unaffected from all of the regulatory clampdown have seen their revenue rise. As of July 2, right before the difficulty level adjustment, the daily mining revenue stood around $20.7 million. The number had risen by $9.3 million within 24 hours before reaching as high as almost $32 million by July 6.
Glassnode explained that the reason for the substantial growth is due to drop in competition amongst crypto miners. According to its video guide,
We have a very interesting dynamic where approximately 50% of the hash power is currently offline and incurring a great number of costs due to logistics and just simply not hashing, having hardware that’s not currently working, and the other 50% has essentially seen half their competition drop off the network.
The analytic site continued that
Whilst the protocol’s now issuing the same number of coins as it regularly does, having difficulty wound down, we’re now in a situation where half the network has doubled their income, and the other half of the network is essentially producing nothing.
Interestingly, the increase recorded in miners revenue recently is now on par with revenue seen during when Bitcoin was trading above the $55,000 margin.