Bitcoin Faces The Largest Ever Negative Difficulty Adjustment

    The Bitcoin network is expected to see its largest ever negative difficulty adjustment today of over 27%, retargeting from 19.9T to ~14.4T. The retargeting is expected to occur later today (50 blocks from the time of writing).

    “Difficulty” is the metric used to describe how hard it is to mine a new block. The higher the network’s difficulty, the more compute power is needed on average by miners to find the next block hash. As Bitcoin’s price and difficulty fluctuate, miners become more or less profitable and turn on or shut off hardware accordingly creating a sort of homeostasis.

    Bitcoin’s difficulty adjusts every 2016 blocks based on the time taken to mine the previous set of 2016 blocks. By targeting a block mining time of 10 minutes, the 2016 blocks should take 2 weeks to mine; as hash power is added or subtracted from the network within this period, however, block mining times can become temporarily shorter or longer respectively.

    Block mining times have steadily increased over the current difficulty period, indicating the large difficulty adjustment to come:

    With the recent exodus of Chinese miners following government crackdown on the industry, miners are shutting off hardware and moving operations elsewhere. Kazakhstan, Miami, Texas, El Salvador, and other more miner friendly locations around the globe are rapidly gearing up for the influx of new machines.

    While there is a near term down spike in hashrate for the Bitcoin network, the large scale migration and dispersion of mining equipment adds further decentralization and security in the long term, as others have pointed out.

    Besides the long term implications on mining decentralization: the difficulty readjustment should merely reduce block times making transactions confirm noticeably faster, and will increase the profitability for miners which will put even more pressure on those leaving China to deploy their hardware.

    Related articles



    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    Ethereum is a better buy than Bitcoin, says America’s biggest bank

    America’s biggest bank has revealed the cryptocurrency they’re naming as a better bet than Bitcoin.As popular as Bitcoin is, America’s biggest bank, JPMorgan, thinks...

    Growing Crypto On Trees With Yield Farming

    Blockchain technology is solving a lot of problems across multiple sectors of the global economy and, apparently, starting a meme gold rush (Source: NBCNews)...

    DeFi Altcoin Project Surges 130% in Seven Days, Far Outperforming Broader Crypto Market

    An altcoin protocol designed to make it easy for developers to create decentralized applications (DApps) is ignoring the greater crypto market correction. Bifrost (BFC) has...

    A New DEX Bridging the Gap Between Crypto and Euro

    Last weekend, the EuroSwap project successfully closed phase-1 of the...


    Subscribe to stay updated.