As the bitcoin mining hash rate has declined in the face of lower prices, the difficulty of mining has been adjusted due to design, which simplifies the mining of bitcoin.
Bitcoin Mining Difficulty Will Be Adjusted to Lower Price
While the bear market continued in 2018, the mine hash rate and difficulties for bitcoin continued to increase. Now it seems that the mining industry, like most of the ecosystem, is beginning to feel the need.
The data from Blockchain.com show a 15 percent drop in both the difficulty level and the hash rate for the Bitcoin network. The hash rate refers to the total processing power of a blockchain network, while the degree of difficulty indicates how easily miners can find the solution to a new block.
XDEX Chief Analyst, Fernando Ulrich, commented the historic decline, the second largest in Bitcoin's history. The largest decline ever recorded was 18 percent in 2011.
#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 reason for this trend? Miners are shut down. When miners go offline, hashing is not enough to solve the complex algorithm required to find a new transaction block. Therefore, the difficulty level is designed to match each 2016 block to the reduced hash rate of the network.
Therefore, the miners who do not operate profitable operations at the current Bitcoin price 0 0  are expected to shut down. However, after the current decline in difficulty, it is much more profitable to mine Bitcoin than its rivals Bitcoin Cash and Bitcoin Cash SV.
Largely bearish during 2018 Since mid-November, BTC prices have plunged even more and sank by 38 percent – which is evidently the less profitable miners.
In a recent interview, Mao Shixing of F2pool, the fourth-largest BTC mining pool, revealed more than 800,000 miners have ceased operations since the start of the fall in prices in mid-November.
Also Bitcoinentrprenuer, Alistair Milne pointed out the current trend on and sarcastically stated that this is the biggest trend "unsafe" has the Bitcoin network in five months based on the hash rate.
He added that Bitmain is one of the weakest low-cost miners, considering that Bitcoin Cash, which is currently sitting, is hoarded to historic lows.
The fact that miners shut down and the difficulty decreases is a feature and not a flaw in Bitcoin's design.
– Arianna Simpson (@AriannaSimpson) December 1, 2018
Arianna Simpson of Autonomous Partners says that the current trend to reduce hash performance is another feed for the BTC bashing brigade , and says that the difficulty adjustment is a & # 39; feature and not an error & # 39; is because the Bitcoin network adapts to the recent price fluctuations. At lower difficulty, it will now be easier for new miners to get back into their Bitcoin rewards.
What are your theories for the decline in bitcoin mining difficulties and the hashrate? Let us know your thoughts in the following comments.
Courtesy of Blockchain.com and Twitter (@fernandoulrich, @alistairmilne, and @AriannaSimpson), coin.dance, shutterstock