Analytics / Forex and Crypto News
The 3rd December after the last adjustment, the difficulty of the Bitcoin network decreased by 15% which is the second major drop in the difficulty of the cryptocurrency in history.
The difficulty of Bitcoin network is one of the main indicators of mining, which determines the "ease" of creating a new block and the reward for each miner.
The Bitcoin hashing difficulty algorithm is adjusted every 2016 mined blocks (~ 13 days) in order to maintain the time characteristics given by Satoshi Nakamoto to generate the new block every 10 minutes. In mid-November 2018, the difficulty of the Bitcoin network has already been lowered twice.
The first largest decline of difficulty in the history of Bitcoin occurred October 31, 2011 - then the adjustment was 18% due to the disabling of a large number of hashing capacities.
The recent adjustment of the difficulty as well as in 2011 was preceded by a drop in the rate and the disconnection of some miners from the network due to the unprofitability of Bitcoin mining in some regions of the world.
The CEO of the Chinese mining pool, F2Pool, Shixing Mao, shared the statistics of profitability of Bitcoin mining.
According to Mao, the Bitcoin break-even point varies around $3,891 - $11,581, depending on the model and type of the equipment, as well as the electricity tariff.
It should be noted that the depreciation of the cryptocurrency led to a significant drop in the profitability of mining, which forced the Chinese mining entrepreneurs to get rid of the equipment, selling it at an unprofitable price.