Bitcoin Price Rally Caused Huge Increase in Mining Difficulty


Bitcoin Price Rally Caused Huge Increase in Mining Difficulty
Contents

Recent DataLight research shows that the Bitcoin price directly reflects the coin’s mining default. In May 2019, both of these metrics reached their highest levels in nine months as the mining industry is rising from the ashes.        

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Bitcoin Mining Is Becoming More Decentralized

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A silver lining

After the mining industry felt the wrath of the bear market, many miners had to choice but to shut down their machines and leave the market. Subsequently, when Bitcoin reached its bottom in December, its mining difficulty started to drop substantially.

In fact, BTC recorded its second largest drop in mining difficulty on Dec. 3. At lower difficulty, miners can generate greater profits.

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It’s profitable again

The interest in cryptocurrency market rekindled after the Bitcoin price started surging on Apr. 2. As of Apr. 18, the Bitcoin mining operation breakeven for efficient mining was standing at $3,550 while the price was above the $5,200 level. Hence, mining operations in China that can take advantage of low electricity costs can generate up to $2,000 in net profits.

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China’s mining ban

 As reported by U.Today, China is mulling over imposing a ban on its mining sector while representing approximately 2/3 of the global industry. That will inevitably tank of the network’s hash rate, thus making mining more profitable for an average Joe.

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About the author

Alex Dovbnya (aka AlexMorris) covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. When he happens to take a break from crypto, Alex delves into cognitive linguistics (metaphors can be fun too!).

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Biggest Cryptocurrency Ecosystems: Ethereum, Omni, Tron, and More

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    Ethereum is two times larger than all other ecosystems combined, but Omni boasts the biggest top project  


Biggest Cryptocurrency Ecosystems: Ethereum, Omni, Tron, and More
Contents

In its latest study, cryptocurrency research firm DataLight examines the biggest cryptocurrency ecosystems. Ethereum, which boasts an eye-popping $12.2 bln ecosystem is in a clear lead with 1,193 projects under its belt.

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The two biggest ecosystem

Top put this into perspective, Maker, the most successful Ethereum-based cryptocurrency,  alone has a market capitalization of $736.5 mln, which is higher than eight out of ten ecosystems on the list. The same is true for BAT and Crypto.com Chain – both of these projects are on the CoinMarketCap top 30 list.

Omni Layer is a meta-protocol that is built atop of Bitcoin. While the ecosystem has six projects, USDT Tether, the flagship stablecoin, is almost fully responsible for its $3.2 bln market cap. Omni (OMNI) is worth slightly more than $1.2 mln.

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Tron, NEO, and more

Similarly to Omni, the Tron ecosystem is also a one-coin band. BitTorrent, the native token of the legendary P2P file sharing protocol of the same name, has a market cap of $350 mln. This alone makes Tron the third largest ecosystem.

NEO, Stellar, and NEM are also among the top five biggest ecosystems. Notably, EOS, the sixth biggest cryptocurrency, has a rather tiny ecosystem with Everipedia, the Blockchain-based encyclopedia, being the only notable project that operates on its platform.

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About the author

Alex Dovbnya (aka AlexMorris) covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. When he happens to take a break from crypto, Alex delves into cognitive linguistics (metaphors can be fun too!).

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