The difficulty level of the Bitcoin mining algorithm has seen the greatest decrease in history
After China cracked down on BTC mining for nearly a month, Bitcoin mining troubles today saw the largest downward correction in history.
Accordingly, after the noon adjustment on July 3, 2021, the difficulty of the Bitcoin mining algorithm decreased by 27.9%, the highest value ever recorded in the history of the creation and development of BTC from 2009 to the present day.
The Bitcoin network is programmed to automatically adjust the difficulty of the mining algorithm every 2016 blocks, which is about every 2 weeks. This mechanism is intended to help the system to react to changes in the hashrate, i.e. the BTC mining capacity, in the Bitcoin network and to ensure that the block generation time is always around 10 minutes / block.
However, in the past 2 weeks, Bitcoin’s hashrate has experienced extreme volatility. Since the last difficulty adjustment on June 14, BTC’s average 7-day hashrate has dropped 35% from 136.47 EH / s to just 85 EH / s.
The cause of this shift is mainly due to the ongoing crackdown on Bitcoin mining in China, which resulted in many mining associations giving up their work or moving abroad, as reported by CoinCu. .
The sudden drop in hashrate also caused the block generation time on the Bitcoin network to be severely delayed. Over the past 2 weeks, the average block generation time was approximately 13.9 minutes / block, longer than the target of 10 minutes. As early as July 1st, it took the Bitcoin network 129 minutes to generate a new block, the longest since 2011.
You may be interested in:
Source: Coin 68