Bitcoin Crypto Mining News & Updates

Difficulty Drop! Second Largest in History of Bitcoin

For most of 2018, while the #bearmarket persisted, mining hash rate and difficulty for Bitcoin continued to increase. Now it appears that the #mining arena just like most of the #ecosystem is beginning to feel the pinch.

Data from Blockchain.com shows a 15 percent #decline in both difficulty and hash rate for the Bitcoin #network. Hash rate refers to the total computing power of a #blockchain network while difficulty references the ease with which miners can discover the #solution for a new block.

XDEX Chief Analyst, Fernando Ulrich, commented on the historic drop, the second biggest in Bitcoin history. The biggest drop ever of 18 percent occurred in 2011.

Fernando Ulrich@fernandoulrich

just had its second largest drop in #mining difficulty in history: -15.1%. This is the current ranking:

2011-nov-01: -18.0%
2018-dec-03: -15.1%
2011-oct-16: -13.1%
2012-dec-27: -11.6%
2011-mar-26: -9,5%
2013-jan-26: -8.6%
2011-dec-01: -8.5%
2012-may-25: -9.2%

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MINERS SHUTTING DOWN

The reason for this trend? #Miners are shutting down. As miners go #offline, there isn’t sufficient hash power to solve the complex #algorithm required to discover (mine) a new transaction block. Therefore, the #difficulty level is designed to adjust every 2016 block to #accommodate the reduced hash rate of the network.

Therefore, the #miners who aren’t running profitable #operations at the current Bitcoin price $4021.50 +0.82% are expectedly shutting down. However, after the current #drop in difficulty, it has now become a lot more profitable to mine Bitcoin compared to rivals #BitcoinCash and #BitcoinCashSV.

Bitcoin difficulty

While 2018 has been predominantly #bearish, since mid-November, #BTC prices took an even larger tumble, falling 38 percent – which is apparently now squeezing out the less-profitable #miners.

In a recent interview, Mao #Shixing of #F2pool, the fourth largest BTC mining pool revealed that more than 800,000 miners have shut down their #operations since the start of the mid-November price decline.

Bitcoinentrprenuer, Alistair #Milne, also weighed in on the current trend, sarcastically noting that this is the most ‘insecure’ the Bitcoin #network has in five months based on hash rate.

He added that #Bitmain would be one of the most vulnerable #miners at low price levels considering their hoarding of Bitcoin Cash, which is currently sitting at #historic lows.

Arianna Simpson@AriannaSimpson

The fact that #miners are shutting down and difficulty is decreasing is a #feature, not a bug, of bitcoin’s design.

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But while the #present trend of decreasing hash power is further fodder for the #BTC bashing brigade, Arianna Simpson of Autonomous Partners, says the difficulty adjustment is a ‘feature and not a bug’ as the Bitcoin network adjusts to recent price volatility.

At lower difficulty, it will now become easier for new #miners to re-enter and receive their #bitcoin reward.

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