EARTHQUAKE IN BITCOIN MINING!
Difficulty Falls by 7.5%, the Largest Drop in 4 Years.
Will it be a GOLDEN OPPORTUNITY for Miners?
The mining difficulty of #bitcoin experienced a significant drop of around 7.5%, marking the largest negative adjustment in nearly four years.
This adjustment, which occurred at block 903,168, reduced the difficulty from 126.41 to 116.96 trillion, according to Mempool data.
Adjustment Mechanism: Mining difficulty automatically adjusts every 2016 blocks (approximately every two weeks) to ensure that a new block is found, on average, every 10 minutes, regardless of the number of active miners.
Slower Blocks Before the Adjustment: Prior to this change, Bitcoin blocks were being mined at a slower than usual rate, averaging 10 minutes and 38 seconds per block.
Implications of Difficulty: A higher difficulty requires more computational power and energy. A decrease, like the current one, makes it easier for the remaining miners to find blocks, as it implies that the number of miners or their capacity has decreased.
Historical Context: This drop is the most pronounced since the ban on mining in China in July 2021 (when it fell by 28%) and exceeds the 7% reduction seen during the bearish market of December 2022.