On November 12, 2023, Bitcoin mining difficulty decreased by 2.37%, falling to 152.27 trillion. This metric reflects the amount of computation required to add a new block to the network. For each block, miners receive 3.125 BTC, which at the current rate amounts to about $321,000.
What Is Bitcoin Mining Difficulty and How Is It Calculated?
Mining difficulty is a parameter that determines how hard it is to find a new block in the Bitcoin blockchain. It is automatically recalculated every two weeks to ensure a stable issuance of new coins regardless of the number of active miners. If more miners join and increase computational power, difficulty rises, and vice versa.
Bitcoin Difficulty and Hashrate Dynamics in 2023
From July to the end of October 2023, mining difficulty increased by 33%, from 117 trillion to a record 155 trillion. During this period, the hashrate — the combined power of all mining devices — reached 1.31 Zh/s. However, in November, the hashrate dropped to 1.09 Zh/s, which led to a decrease in difficulty.
Reasons and Consequences of the Difficulty Drop in November
The 2.37% difficulty decrease is linked to some miners shutting down equipment due to high load and costs. This reduction is an important signal of market stabilization, as the adjustment allows miners to improve margins and maintain profitability. According to Anton Gontarev, Commercial Director of Intelion, the difficulty drop is not a weakening of the industry but its adaptation to current conditions.
Current Mining Profitability and Industry Outlook
Despite the changes, mining profitability remains positive, averaging 2.7–3.8% per month, or 32–46% annually. Mining is increasingly integrating with other fields, such as artificial intelligence tasks, which helps reduce dependence on cryptocurrency market volatility. Intelion in Samara implements this approach by using capacities for AI and mining simultaneously.
Expert Opinions and Mining Development Trends
Fred Thiel, head of the largest US miner MARA, notes that mining will become unprofitable without at least a 50% annual increase in Bitcoin’s price. Meanwhile, the industry is moving toward a computational economy where mining is just part of a broader technological infrastructure. Russian companies with their own energy sources and data centers could take strong positions in this new market model, says Anton Gontarev.
Why This Matters
For miners in Russia with a small number of devices, the difficulty decrease means an opportunity to improve extraction efficiency and increase margins. This is especially relevant given current electricity tariffs and Bitcoin’s price. Market stabilization reduces risks and provides time to adapt to changing conditions.
What Miners Should Do
- Monitor difficulty and hashrate dynamics to respond promptly to market changes.
- Optimize equipment and electricity usage to maintain profitability.
- Consider diversifying business, for example, by using capacities for artificial intelligence tasks.
- Evaluate Bitcoin price prospects and plan investments considering possible changes in profitability.