Bitcoin Faces Second Largest Difficulty Drop in History After Latest Adjustment
Bitcoin Mining difficulty is dropping fast. Chinese mining pool BTC.com's figures show that after the latest Bitcoin mining difficulty adjustment, the leading cryptocurrencies mining difficulty fell by around 15% from 6.65 TH recorded on November 17th to a readjustment of 5.65 TH as of 3rd December 2018.
The hashing difficulty algorithm of Bitcoin is generally adjusted every two weeks to maintain the normal 10-minute block time. The algorithm has been adjusted twice today since the beginning of a so-called "crypto winter" in mid-November.
The largest drop in Bitcoin mining difficulty history happened on October 31, 2011, with an adjustment of -18 percent.
The largest drop in Bitcoin mining difficulty history happened on October 31, 2011, with an adjustment of -18 percent. The second biggest loss was the one just before this (mid-October 2011) that reportedly saw the difficulty figures getting slushed by 13% from the previous period. The latest difficulty loss has now taken the second position. As a result of the latest loss, the cryptocurrency market cap fell by 45% in a span of two weeks.
The recent adjustment of Bitcoin hashing difficulty was preceded by a massive market drop, with Bitcoin itself losing 44% of its value in the same time period. Market experts have attributed the market collapse to regulatory pressure, the hash rate war after controversial Bitcoin Cash hard fork, and the "terrible" condition of the global markets.
The decrease in the difficulty, along with the market condition and also coin devaluations are forcing miners to quit. Following the price slump that followed the Bitcoin Cash hard folk on 15th November, several miners have made great losses in their mining operations. A week after the massive drop when Bitcoin was trading around $4,300 in late November, Chinese miners started selling their mining machines by weight.
"the cryptocurrency market cap fell by 45% in a span of two weeks"
After a slight recovery over the weekend, when Bitcoin was trading close to $4,000, it collapsed again today, Dec 4. At press time, Bitcoin is trading at $3,903, down 6 percent over the 24-hour period.