29.11.2021

A historic record for a 28% reduction in the difficulty of bitcoin mining was held

Bitcoin’s blockchain has experienced the biggest drop in mining difficulty as, after tight restrictions on miners in China, an automatic network stabilization mechanism kicked in.

The difficulty of mining bitcoin following the results of the 343rd era, on July 3, decreased by 27.93% to 14.3 trillion, according to data from the BTC.com portal.

This is a record pullback for the entire history of the BTC network since 2009. The previous maximum was set in October 2011 at -18%.

Bitcoin mining difficulty - record drops

The last time adding new blocks to the Bitcoin network was just as easy at a price of $ 9,000. The cryptocurrency is currently trading at around $ 35,400.

BTC price versus mining difficulty

The difficulty of mining bitcoin is measured on its own scale – it started from one, when the creator of the cryptocurrency Satoshi Nakamoto began to mine it at the simplest level. Difficulty is recalculated every 2,016 blocks, which takes an average of two weeks to mine.

Thus, bitcoin is able to maintain a block time of about 10 minutes, despite changes in the amount of computing power. In this case, the previous change in difficulty took place on June 13, that is, it took almost three weeks to add the specified number of blocks. This is another record since ASIC miners appeared on the network.

The average time for adding a block in the last segment reached 13.9 minutes, and on July 1, there was no new block in the network for 129 minutes. The average bitcoin hash rate at the same time fell from 136 EH / s to 85 EH / s, or 35%.

ByteTree Asset Management CIO Charlie Morris tweeted that fees dropped from $ 10 to $ 6 a few hours after the event.

“Nice move in the price of bitcoin as, as expected this morning, there is a downward adjustment in difficulty. In the last hour, fees are $ 6 up from yesterday’s $ 10. Hopefully, transactions will now start to rise. They have to grow. “

The drop in hashrate was triggered by the power outage of miners in China, where authorities have resumed efforts in recent weeks to tackle activity in the cryptocurrency space. The final decrease in difficulty this Saturday turned out to be more significant than predicted a week ago.

“Difficulty changes have several interesting characteristics in the real world, especially for miners. As the difficulty decreases, you start earning more bitcoins if you manage to stay online. As it grows, you earn less as more miners are involved. Miners who continue to work are likely to become even more profitable over the coming weeks, unless the price corrects lower or the migrating computing power returns to the network , ”said Will Foxley of Compass mining company.

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