Bitcoin Faces Second Largest Difficulty Drop in History After Latest Adjustment


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                Bitcoin mining difficulty saw its second largest drop in its history, surpassed only by a -18 percent adjustment in late October 2011.
                <p dir="ltr">Bitcoin&rsquo;s (BTC) mining difficulty saw its second largest drop in history, with a -15 percent adjustment on Monday, Dec. 3, as per data <a href="https://btc.com/stats/diff" rel="nofollow,noopener" target="_blank">provided</a> by major <a href="https://cointelegraph.com/tags/china">Chinese</a> mining pool BTC.com.</p><p dir="ltr"><a href="https://cointelegraph.com/tags/bitcoin">Bitcoin&rsquo;s</a> hashing difficulty algorithm is normally adjusted every two weeks to maintain the normal 10-minute block time. It has been adjusted for the second time today since the beginning of a so-called &ldquo;crypto winter&rdquo; in mid-November, after which the difficulty in mining Bitcoin has been steadily dropping.</p><p dir="ltr"><img alt="The most recent adjustments of Bitcoin&rsquo;s hashing difficulty. Source: btc.com" src="https://coinsonnews.com/wp-content/uploads/2018/12/bitcoin-faces-second-largest-difficulty-drop-in-history-after-latest-adjustment.png" title="The most recent adjustments of Bitcoin&rsquo;s hashing difficulty. Source: btc.com"></p><p dir="ltr" style="text-align: center"><em>The most recent adjustments of Bitcoin&rsquo;s hashing difficulty. Source: <a href="https://btc.com/stats/diff" rel="nofollow,noopener" target="_blank">btc.com</a></em></p><p dir="ltr">The largest drop in Bitcoin&rsquo;s difficulty history happened on Oct. 31, 2011, with an adjustment of -18 percent, while another decrease (-13 percent) in mid-October 2011 is the third largest such decrease.</p><p dir="ltr">A recent adjustment of Bitcoin&rsquo;s hashing difficulty was preceded by a massive market drop, with Bitcoin losing more than a third of its price since Nov. 14, according to <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="nofollow,noopener" target="_blank">CoinMarketCap</a>. Financial experts have <a href="https://cointelegraph.com/news/what-is-going-on-with-the-crypto-markets-analysts-unpack-factors-behind-10-days-slump">attributed</a> the market collapse to regulatory pressure, the <a href="https://cointelegraph.com/news/bitcoin-cash-hard-fork-battle-who-is-winning-the-hash-war">hash rate war</a> after controversial Bitcoin Cash hard fork, and the <a href="https://cointelegraph.com/news/fundstrats-tom-lee-bear-markets-are-a-golden-time-to-be-in-crypto">&ldquo;terrible&rdquo; condition</a> of global <a href="https://cointelegraph.com/tags/markets">markets</a>.</p><p dir="ltr">The decrease in difficulty, along with market panic and coin devaluations are forcing the miners to quit. In September, CEO of China-based crypto mining pool F2Pool Shixing Mao <a href="https://cointelegraph.com/news/major-mining-pool-f2pool-publishes-list-of-minimum-prices-for-profitable-crypto-mining">revealed</a> data on mining profitability.</p><p dir="ltr">According to Mao, the break-even point for Bitcoin was between $3,891 and $11,581, depending on the make and model of equipment being used. At the time of the forecast, Bitcoin was trading around $6,400.</p><p dir="ltr">In late November, a week after the massive drop when Bitcoin hovered around $4,300, Chinese miners <a href="https://cointelegraph.com/news/china-crypto-miners-sell-off-mining-devices-by-kilo-amidst-market-decline">reportedly</a> started to sell <a href="https://cointelegraph.com/tags/mining">mining</a> machines by weight, as opposed to price per unit. According to an F2Pool <a href="https://www.weibo.com/1829463527/H3zHRs26X?type=comment#_rnd1542916216171" rel="nofollow,noopener" target="_blank">post</a>, miners are especially eager to sell the older models, including the Antminer S7, Antminer T9, and Avalon A741, as they have reached their &ldquo;shutdown price.&rdquo;

After a mild recovery over the weekend, where Bitcoin managed to stay slightly above $4,000, the world’s top cryptocurrency has collapsed again today, Dec. 3. At press time, Bitcoin is trading at $3,887.09, down 7.22 percent over the 24-hour period.



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