Bitcoin Miners Get 4% Relief on Difficulty
The last network tweak reduced Bitcoin mining difficulty by almost 4%, according to on-chain statistics.
Latest Adjustment Lowers Bitcoin Mining Difficulty
The “mining difficulty” statistic measures how tough Bitcoin block mining is. This indicator's value changes automatically every two weeks on the BTC blockchain.
The goal of the challenge must be understood to determine whether this shift is beneficial or bad. A method to curb asset inflation is challenging.
The only option to raise BTC supply is to mine new blocks and get block subsidies. The block subsidy is constant, hence the only variable affecting bitcoin supply increase is miners' hashing rate.
Thus, this rate must be limited to control asset inflation. Coin founder Satoshi understood this and created the difficulty as a solution.
Miners mine quicker and earn block subsidy faster as their hashrate increases.
Although the BTC network does not want this, it boosts its difficulty to slow miners down to the targeted pace of a block every 10 minutes.
When miners lose hashrate, the difficulty reduces, so they can process blocks at the same speed with less computer power.
The graphic below implies this latter sort of shift happened during the recent adjustment.
This recent downward modification has reduced BTC network difficulty by almost 4%. The graph demonstrates that the chain has been responding to the miners growing quicker at their work since the last adjustment was sharply positive.
The 7-day average mining hashrate chart showed this, since its value reached a new ATH before this difficulty rose.
Due to the difficulty, when new miners join the Bitcoin network, their income share decreases since the block subsidy stays the same.
The hashrate has dropped since its ATH because miners were pressured by the high difficulty bump. Due to the difficulties of identifying a negative change, some miners may perceive better circumstances.
