BTC Mining Marks Biggest Difficulty Drop Ever: Report

BTC Mining marks biggest difficulty drop ever as It dropped by 28% after the Chinese governemnt shuttered the mining farms so let’s read more in our latest Bitcoin news.

Bitcoin recorded the lowest drop in history and it could be good news for miners outside of China. The rate is not going to recover as fast but it is unlikely to go much lower than this as miners explained. Bitcoin’s mining difficulty dropped by 28% the biggest drop in the network’s history and this decline shows the severe impact of China’s major crackdown on Bitcoin miners. Mining difficulty measures the computational power that is required to validate BTC transactions and also how hard it is to earn a new BTC. The network adjusts the difficulty each day to reflect the level of competition among the miners and lower mining difficulty indicates much less competition.

Now, BTC mining marks the biggest difficulty drop ever after China’s crackdown on BTC miners which was reasonable for the 65% of the network hash rate and it is well below the government started to crash the miners a month ago when Bitcoin’s hash rate peaked at 198EH/s. After the crackdown, the hash rate crashed to 89 ETH/s. Chinese miners are now emigrating massively or selling the mining machines to foreign mining farms but until China’s Bitcoin miners find their new homes, the Non-Chinese miners will benefit from the reduced difficulty and will make it much cheaper to mine BTC. Ben Gagnon who is a chief mining officer at Bitfarms said:

“All other miners who continue to operate gain a commensurate amount of market share and therefore daily block rewards.”

Peter Wall, the CEO of Argo Mining said that while miners in the West are trying to capitalize on the gap from the crackdown, the market for mining is flourishing:

“Displaced Chinese miners are searching the globe for appropriate hosting sites for their machines, and that means, in places like North America, power and space are at a premium like never before,” he said.

The Chinese government crackdown and the exodus of miners contributed to the halving of the BTC price and the reduced hashrate means that there are not as many computers that are backing the network thus making it less secure. The crackdown is good for BTC in the long run according to Josh Goodbody who led Huobi’s mining sales before becoming COO of Qredo. It’s still hard to determine when and where the mining operators will reinstall their machines because the scale of the infrastructure in China doesn’t exist anywhere in the world.