قالب وردپرس درنا توس
Home / Business / Bitcoin mining difficulty has just seen the second biggest decline in history

Bitcoin mining difficulty has just seen the second biggest decline in history




  Bitcoin Mining Crypto

The long-running crypto market is finally manifesting in the bitcoin mining industry, which at times seemed insurmountable for falling prices, but has now experienced a modest exodus.

Bitcoin hash rate rarely starts decreasing

Basically, miners generate bitcoin blocks by competing to solve complex mathematical problems. As the hashrate increases, blocks are found faster, while the opposite occurs when the hashrate decreases. To maintain a consistent blocking time of ~ 1

0 minutes, Bitcoin automatically adjusts the difficulty of these issues at about two-week intervals to accommodate new computers entering or exiting the network. A general uptick in prices associated with fast Advances in mining technology have led to continued growth in hashrates, even in times of negative market conditions. Almost a year in a bear market where the Bitcoin price has fallen from its all-time high of more than $ 16,000, that's not true anymore.

  Bitcoin-Hashrate "width =" 1024 "height =" 576 "srcset =" https://248qms3nhmvl15d4ne1i4pxl-wengine.netdna-ssl.com/wp-content/uploads/2018/12/bitcoin-mining-network- hash-rate-1024x576.png 1024w, https: // 248qmsnnhpncontrol / wp-content / uploads / 2018/12 wenggine.netdna-ssl.com/wp-content/uploads/2018/12/bitcoin-mining-network-hash- rate-300x169.png 300w, https://248qms3nhmvl15d4ne1i4pxl-wpengine.netdna-ssl.com/wp-content/uploads/2018/12/bitcoin-mining-network-hash-rate-768x432.png 768w, https: // 248qms3nhmvl15d4ne1i4pxl-wenggine.netdna-ssl.com/wp-content/uploads/2018/12/bitcoin-mining-network- hash-rate-640x360.png 640w, https://248qms3nhml15d4ne1i4pxl-wpengine.netdna-ssl.com/wp -content / uploads / 2018/12 / bitcoin-mining-network-hash-rate-360x203.pngwww, https://248qms3nhmvl15d4ne1i4pxl-wenggine.netdna-ssl.com/wp-content/uploads/2018/12/bitcoin-mining -netwo rk-hash-rate.png 1440w "Sizes =" (max-width: 1024px) 100VW, 1024px

As reported by CCN, the bitcoin hash rate is s mid-October as falling prices accelerated The rate at which older mining models became obsolete and profit-driven companies started to shut down their machines to avoid a loss. An estimate illustrates the average cost of producing a new BTC unit at $ 4,500, a mark BTC has generally underperformed since November 20, even though the hash rate began to decline about a month earlier.

The Exodus of this miner is now reflected in the network Difficulty of Bitcoin, which decreased by more than 15 percent After the regular difficulty adjustment that took place earlier today. According to data compiled by XDEX chief analyst Fernando Ulrich, this represents the second largest difficulty drop in Bitcoin's ten-year history and the largest since November 1, 2011, when the difficulty decreased by 18 percent.

The adjustment of today's difficulty marked the second decline in a row, with the difficulty level declining by 7.3 percent on November 18th. This decline was notable in itself as it represents the largest decline in around six years and is currently the tenth largest decline overall.

Before November 18, the last drop in difficulty was on July 15, and such declines have already become a rare event in recent years. With a present value of 37.7 EH / s, the BTC hash rate is 39 percent below the daily high of 61.9 EH / s at the end of August. It is also about 31 percent lower than the weekly average high it set on October 1st.

The beginning of a "death spiral" or a healthy development?

Bitcoin Bears Like Santa Clara University, Professor of Finance, Atulya Sarin It is claimed that this recent decline suggests that the market has entered a "death spiral" as BTC – its argument – is worth it Deducting the cost of mining The decline in hashrates is a healthy market, given the parabolic rate it has grown over the past 12 months – even as prices plummeted.

"The bitcoin hashrate has dropped in recent weeks, but that's not worrying at all," Greenspan said at the time. "It's actually reassuring as the rate rose so sharply over the year and now returns to normalized levels."

Selected image from Shutterstock

Get an exclusive cryptanalysis of professional traders and investors at Hacked. com. Sign up now and get the first month for free. Click here.

Advertising


Source link