Bitcoin Faces Second Largest Difficulty Drop in History After Latest Adjustment


p style=”float:right;margin:0 0 10px 15px;width:240px”>

                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="" rel="nofollow,noopener" target="_blank">provided</a> by major <a href="">Chinese</a> mining pool</p><p dir="ltr"><a href="">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:" src="" title="The most recent adjustments of Bitcoin&rsquo;s hashing difficulty. Source:"></p><p dir="ltr" style="text-align: center"><em>The most recent adjustments of Bitcoin&rsquo;s hashing difficulty. Source: <a href="" rel="nofollow,noopener" target="_blank"></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="" rel="nofollow,noopener" target="_blank">CoinMarketCap</a>. Financial experts have <a href="">attributed</a> the market collapse to regulatory pressure, the <a href="">hash rate war</a> after controversial Bitcoin Cash hard fork, and the <a href="">&ldquo;terrible&rdquo; condition</a> of global <a href="">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="">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="">reportedly</a> started to sell <a href="">mining</a> machines by weight, as opposed to price per unit. According to an F2Pool <a href="" 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.

Source link

Comments (No)

Leave a Reply

%d bloggers like this: