Bitcoin mining difficulty decreased by 9% to January levels

Bitcoin has become easier to mine.

At block height of 633,024, reached at 12:30 UTC on Thursday, the Bitcoin blockchain has adjusted its mining difficulty to 13.7 trillion with a 9.29% decline and reached its lowest level since January. this year.

According to data compiled by CoinDesk Research, today witnessed the eighth largest negative difficulty correction in Bitcoin Bitcoin history and the eighth case of two or more consecutive negative adjustments.

The fifth correction also followed the 6% reduction recorded on May 20, which was the first difficult change of the network after the Bitcoin Bitcoin halving event.

The halving - a scheduled event coded into the Bitcoin protocol, reduced the mining reward from 12.5 bitcoin (BTC) per block to 6.25 units. The event also eliminated operators running older, less efficient devices who could no longer return profits.

The remaining miners with access to cheap electricity and more modern equipment will find today's adjustment to be good news, as mining difficulty means bitcoin has become easier to mine. .

But even as the difficulty subsides, the online hashrate (or total computing power) has increased over the past week as mining companies have started to convert on new machines shipped before the Chinese rainy season.

Bitmain and MicroBT, two major Chinese mining equipment manufacturers, have dispatched their most efficient ASIC miners such as AntMiner S19 and WhatsMiner M30S since May. According to their official websites and major distributors, pre-orders for these flagship machines for the July, August, and September batches were mostly sold out.

Meanwhile, the Chinese monsoon is now lowering hydroelectric power in the southwestern country to $ 0.03 per kilowatt hour (kWh). At that rate, even older mining equipment like the AntMiner S9s can work with profitability at the current price and difficulty level of bitcoin.

The Bitcoin network changes the mining difficulty every 2,016 blocks, about every two weeks, to keep the average block production period every 10 minutes.

If more people have joined the mining game, resulting in a higher hash rate and a period of less than 10 minutes on average, the network will automatically increase difficulty again. Conversely, if many people are withdrawn from the network during any cycle, resulting in a lower hash rate and a longer blocking period, the network will reduce the difficulty to make it easier for me to exploit.

Data shows an average of 7 days of Bitcoin hashrate, initially falling to 90 exahash per second (EH / s) around May 27 - one week after the last adjustment on May 20.

At the time, it was 15% lower than the average hash rate (108 EH / s) before May 20. But over the past week, the total computing capacity has steadily increased to well above the level of 100 EH / s. .Indeed, the average block production time from May 20 to May 27 is more than 12 minutes, longer than the intended 10 minute period. The increased hash rate from May 27 to now has shortened the time within 11 minutes during this time period.