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
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 275th Bitcoin mining period has started with block 552,384. Difficulty New Difficulty: 5.646.403.851.534 (-15.13%)
– Bitcoin Block Bot (@BtcBlockBot) December 3, 2018
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.
# Bitcoin just had the second largest decline in mining grade in history: -15.1%. This is the current ranking:
2013 -26. January: -8.6%
– Fernando Ulrich (@fernandoulrich) December 3rd 2018
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."
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