Profits from Bitcoin mining can double in the next few months. Mining the top cryptocurrency is now significantly less competitive following China’s crackdown on mining activities. According to several Bitcoin mining sites, the difficulty of mining Bitcoin has dropped by about 28%.
In addition, BitOoda, which is a financial services platform in the crypto niche has developed an index which it calls the North American hash spread. The North American hash spread index is a measure of the difference between bitcoin mining revenue per megawatt-hour and the cost of the needed power. Currently the index shows that the difference has doubled from $225 to $445, indicating that bitcoin mining is now more profitable.
The shift in profitability has been attributed to China’s active crackdown on Bitcoin mining. China is estimated to support over 70% of Bitcoin mining. However, as many mining firms shut shop in the wake of China’s hard-handed approach, for other miners, it has become easier to mine the top cryptocurrency.
Moreover, following the active crackdown on Bitcoin mining many miners are actively shifting bases from China to Europe and North America. Miners say they had previously seen similar profitability levels back in April when Bitcoin touched ATH. However, bitcoin prices have since dropped by about 50%.
