The BTC hash rate drops with adjustments to the level of difficulty by 40% to a 1-year low

The BTC hash rate fell 40% to a 1 year low in preparation for the biggest difficulty adjustment in history, as we read on our latest bitcoin news.

The impact of China’s raid on BTC mining is still taking its toll on the network as the hash rate to a new low below 90 EHash / sec days before the next difficulty adjustment is due. drops was one of the biggest fixes in BTC history. The world’s most populous country decided to step up its hostile actions against the crypto industry in May when it began mining BTC. The country, which is responsible for more than 60% of the world’s mining, has begun regulatory crackdowns, so it is inevitable that the network will suffer repercussions after authorities demanded that many regions shut down all proceedings.

Within a few weeks, the hash rate began to drop, and some reports even suggested that it slowed down the creation of new coins. The situation has worsened since it was last reported less than a week ago, with the hash rate hitting an eight-month low at around 100 EHash / sec. decreased, but now below 90 EHash / sec The index fell to 83 Ehash / s this weekend, its lowest level since mid-June 2020, so the BTC hash rate has dropped 40% or higher since ATH a month ago.

When creating a new network, Satoshi Nakamoto predicted a rapid drop in hash rate, and to protect the system, the creator implemented a process that will help adjust the level of difficulty. It was a feature that popped up in every block in 2016 and changed the way miners work. In extreme cases, mining becomes easier, which means that the network’s hash rate recovers when no more miners arrive. When the Chinese government cracked down on mining again, the troubles subsided and saw another negative correction two weeks later.

On-chain data shows that the next correction will take place in about four days and will reduce the difficulty level to 23%, and when that happens it will be the largest negative difficulty correction in BTC history. On the plus side, reports confirm that Chinese miners are already preparing to move to other places like the US or Kazakhstan. They can also go back to putting their computing equipment on the blockchain.

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