BTC’s sell-off, block time average increased to 14 minutes ?
Bitcoin’s average daily block time has been slow these days by almost 70%. Due to this steep decline in prices of BTC the miners are pushed to switch off their equipments to lower the costs.
Bitcoins are created by miners by solving complicated computer equations using hardware equipments. For this particular reason miners are also called as backbone of Bitcoin. The miner solving computer equation fastest receives the fee (reward) which is taken for that particular transaction. Average time taken to add a new block on the blockchain network is 10 minutes which means that after every 10 minutes a new block is added on the network.
Bitcoins price has a great impact on miners revenue because the reward or fee come in as bitcoins so if the bitcoin price is performing well then it will have a good impact on the miners revenue. According to latest market trends, the largest cryptocurrency digital asset has recorded yearly low at $3600 which has dropped from $10,000 in February. This trend has reduced the miners revenue as well. So to reduce the costs miners had to switch off the hardware equipments. This did not stop here, switching off the equipments led to an increase in the average block time to create a new block. Earlier when bitcoin was over $9,000, average time needed to create a block was 8 minutes. Shutting down the equipments has increased the average block time upto 70%. Average required block time has a serious increase to 14 minutes.
Equipment’s shut down has also an impact on the coming Bitcoin Halving. This was scheduled to happen on block number 630,000 but due to the increase in average block time it may be delayed. Some suggests that Halving will happen in April but now it is estimated in second week of May. One can also take a note from here that due to this Halving there will be a certain decrease in block rewards to around 6.25 BTC per block. Again a reason to effect the revenue of miners especially in case where Bitcoin’s Price will not recover. This also raises a question, is mining of bitcoin’s are profitable ?
Bitcoin’s hash rate was also impacted due to miners shutting down their equipments. In the starting of March 2020, 135 quintillion hashes per second were recorded. As per the latest trends the hash rate has plunged to 82 quintillions per second a lowest rate recorded since December 2019.